Latest in enzyme technology boosts performance of pigs and poultry fed DDGS
Pig and poultry producers looking for lower feed costs with distillers dried grains with solubles (DDGS) can use the latest developments in enzyme technology reported Dr Alexandre Péron at the 42nd University of Nottingham Feed Conference, UK, 3-4 September 2008.
As feed costs continue to escalate, by-products from the food and fuel ethanol industries can provide alternative, more cost- effective ingredient options for the nutritionist. The use of DDGS in animal feed has increased with the growth of the bioethanol industry. Whilst DDGS is potentially a cost effective and valuable feed ingredient, there are certain anti-nutritional factors which can limit its use in pig and poultry feed.
Dr Alexandre Péron, Technical Services Manager, Danisco Animal Nutrition, presented two posters which outlined how the latest developments in enzyme technology can improve the nutrient digestibility of pig and poultry diets containing DDGS.
A trial conducted by Auburn University, USA, showed that adding both a new-generation bacterial phytase (Phyzyme® XP) together with xylanase, amylase and protease enzymes (Avizyme® 1502) to corn-soy based broiler diets containing 10% corn DDGS improved bodyweight gain by 5-12% and feed efficiency by 3-5%.
Similarly in pigs, a trial showed that adding both the new-generation phytase (Phyzyme® XP) together with a highly effective xylanase (Porzyme® 9300) to a corn-soy based diet containing 20% corn DDGS significantly improved digestible energy by 5.6% (175 kcal/kg, 0.73 MJ/kg), ileal amino acid digestibility by 4-8% and increased phosphorus digestibility from 22% to 51%.
Europe Awash with Feed Wheat after Rains Hit Quality
Europe Awash with Feed Wheat after Rains Hit Quality
Source: Reuters
(dated 01/08/2008)
London, July 31 - Europe faces a glut of feed wheat with production rising sharply this year and heavy rains ensuring many crops, particularly in the Black Sea region, will not be suitable for milling into bread flour.
New crop British feed wheat prices on Euronext.liffe fell to an 8-month low this week and premiums for milling-grade supplies rose sharply, with a large amount of Black Sea grain appearing destined for the animal feed sector.
"Rumours about bad quality of Ukrainian grain and abundant supply of feed grains add to the decrease in prices," the Moscow-based Institute of Agricultural Market Studies said.
The International Grains Council on Thursday projected the European Union's wheat crop this year would rise 19 percent to 141.6 million tonnes while Ukraine and Russia should harvest a combined 73.5 million, up 16 percent.
IKAR said Russia also expects a relatively high share of feed wheat in the new crop.
"Rains benefitted crops in key areas but delayed harvesting and put quality at risk in parts of the EU, Ukraine...," the IGC said on Thursday.
Jozsef Vancsura, Chairman of the Association of Hungarian Grain Growers, said this year's wheat crop is expected to come in at 5.5 million tonnes, up from 4 million last year.
However, producers expect about 2.0-2.5 million tonnes of this year's crop to be feed quality due to unseasonal amounts of rain in July. Last year almost all of the wheat harvested was milling grade.
HIGHER QUALITY IN WEST
Reports from crops in western European countries such as France and Britain were more promising.
"At the moment the quality looks excellent, very high bushel weights, very high specific weights, good hagbergs," said wheat trader Simon Ingle of U.K. farmers co-operative Grainfarmers.
"That is encouraging as the UK is going to need some quality to hold itself above the dire feed wheat levels. Black Sea feed wheat prices look very cheap," he said.
In France, the European Union's largest grains producer and exporter, the wheat's quality was expected to be good, although variable from one region to the other.
"It seems that we are in a year when there are wide differences in yields and we will probably see the same in terms of quality," Jacques Mathieu, deputy director of France's grain institute Arvalis said.
"But it is likely that we will have no problem answering all types of needs, for the milling industry, for exports and for feed makers," he added, stressing that the harvest was not over.
He said the quality was expected to be exceptional in the north but less so in the south part of the country.
Germany's wheat harvest quality is looking generally satisfactory but there are concerns that low protein levels after repeated rain this summer will lead to larger volumes of feed wheat than previously expected.
"Wheat quality varies greatly between regions following repeated rainfall in recent weeks," a spokesman for Germany's association of farming cooperatives, said.
LOWER PROTEIN
"Indications are that in much of the country protein levels are about half a percentage point lower than normal, which could push noticeable volumes of marginal-quality wheat into feed categories as they will not be accepted by flour mills."
"But this is not a disaster and generally quality levels are good." The association estimates that about 30 to 35 percent of Germany's wheat harvest has now been brought in.
Spain's soft wheat harvest is forecast to exceed last year's by about 10 percent due to farmers sowing more land, but growers say that weather conditions were too uneven during the campaign to ensure quality.
"It will be interesting to see how much domestic milling wheat will be switched to feed this campaign given the unexpectedly low quality of what has been harvested so far," said Jorge de Saja, president of feed makers' group CESFAC.
Italy has wrapped up wheat harvesting with a strong increase in output, but the new crop quality was patchy as some regions suffered from unfavourable weather, grain traders said.
"Soft wheat quality is very good in Bologna, medium in Veneto and low in the north west where specific weights are too low to make it for bread quality," said one trader.
Source: Reuters
(dated 01/08/2008)
London, July 31 - Europe faces a glut of feed wheat with production rising sharply this year and heavy rains ensuring many crops, particularly in the Black Sea region, will not be suitable for milling into bread flour.
New crop British feed wheat prices on Euronext.liffe fell to an 8-month low this week and premiums for milling-grade supplies rose sharply, with a large amount of Black Sea grain appearing destined for the animal feed sector.
"Rumours about bad quality of Ukrainian grain and abundant supply of feed grains add to the decrease in prices," the Moscow-based Institute of Agricultural Market Studies said.
The International Grains Council on Thursday projected the European Union's wheat crop this year would rise 19 percent to 141.6 million tonnes while Ukraine and Russia should harvest a combined 73.5 million, up 16 percent.
IKAR said Russia also expects a relatively high share of feed wheat in the new crop.
"Rains benefitted crops in key areas but delayed harvesting and put quality at risk in parts of the EU, Ukraine...," the IGC said on Thursday.
Jozsef Vancsura, Chairman of the Association of Hungarian Grain Growers, said this year's wheat crop is expected to come in at 5.5 million tonnes, up from 4 million last year.
However, producers expect about 2.0-2.5 million tonnes of this year's crop to be feed quality due to unseasonal amounts of rain in July. Last year almost all of the wheat harvested was milling grade.
HIGHER QUALITY IN WEST
Reports from crops in western European countries such as France and Britain were more promising.
"At the moment the quality looks excellent, very high bushel weights, very high specific weights, good hagbergs," said wheat trader Simon Ingle of U.K. farmers co-operative Grainfarmers.
"That is encouraging as the UK is going to need some quality to hold itself above the dire feed wheat levels. Black Sea feed wheat prices look very cheap," he said.
In France, the European Union's largest grains producer and exporter, the wheat's quality was expected to be good, although variable from one region to the other.
"It seems that we are in a year when there are wide differences in yields and we will probably see the same in terms of quality," Jacques Mathieu, deputy director of France's grain institute Arvalis said.
"But it is likely that we will have no problem answering all types of needs, for the milling industry, for exports and for feed makers," he added, stressing that the harvest was not over.
He said the quality was expected to be exceptional in the north but less so in the south part of the country.
Germany's wheat harvest quality is looking generally satisfactory but there are concerns that low protein levels after repeated rain this summer will lead to larger volumes of feed wheat than previously expected.
"Wheat quality varies greatly between regions following repeated rainfall in recent weeks," a spokesman for Germany's association of farming cooperatives, said.
LOWER PROTEIN
"Indications are that in much of the country protein levels are about half a percentage point lower than normal, which could push noticeable volumes of marginal-quality wheat into feed categories as they will not be accepted by flour mills."
"But this is not a disaster and generally quality levels are good." The association estimates that about 30 to 35 percent of Germany's wheat harvest has now been brought in.
Spain's soft wheat harvest is forecast to exceed last year's by about 10 percent due to farmers sowing more land, but growers say that weather conditions were too uneven during the campaign to ensure quality.
"It will be interesting to see how much domestic milling wheat will be switched to feed this campaign given the unexpectedly low quality of what has been harvested so far," said Jorge de Saja, president of feed makers' group CESFAC.
Italy has wrapped up wheat harvesting with a strong increase in output, but the new crop quality was patchy as some regions suffered from unfavourable weather, grain traders said.
"Soft wheat quality is very good in Bologna, medium in Veneto and low in the north west where specific weights are too low to make it for bread quality," said one trader.
Phosphorus Requirements for Poultry
Phosphorus Requirements for Poultry
________________________________________
Author: Todd J. Applegate (Purdue University); Roselina Angel (University of Maryland, College Park) - Purdue University Cooperative Extension Service, Animal Sciences publication AS-583-W
Publication date: 07/21/2008
This fact sheet has been developed to support the implementation of the Natural Resources Conservation Service Feed Management 592 Practice Standard. The Feed Management 592 Practice Standard was adopted by NRCS in 2003 as another tool to assist with addressing resource concerns on livestock and poultry operations. Feed management can assist with reducing the import of nutrients to the farm and reduce the excretion of nutrients in manure.
Phosphorus (P) is one of the essential minerals for all animals. It plays a critical role in cellular metabolism, as a part of the energy currency of the cell, in cellular regulatory mechanisms, and in bone. Bone is the main storage organ for P containing 85% of the body's total P. Through its involvement in these metabolic and structural processes, P is essential for animals to attain their optimum genetic potential in growth and feed efficiency as well as skeletal development. Because of the key role of P in bone development and mineralization, the requirements of the animal for this mineral are highest during the time the animal is growing.
In diets of non-ruminant animals, such as broilers, the challenge in P nutrition is how to best make available to the animal, the P that is present in the diet. Most poultry diets are primarily composed of plantbased ingredients. In plants, P is present in different forms such as attached to organic molecules like phospholipids and proteins but most is present as part of the phytic acid molecule. Phytic acid P is variably available to poultry (0 to 50%), and in order to meet the meet the P needs of the bird, inorganic P must be added to the diet. The enzyme, phytase, can liberate much of this P. (For further information on phytase and other P reduction strategies, please refer to Phytase and Other Phosphorus Reducing Feed Ingredients Factsheet.)
Overfeeding of dietary P is common commercially, with excesses of 20 to 100% over published requirements commonly observed. Part of this overfeeding is due to the lack of a centralized, up-to-date publication on poultry P requirements. Currently, the last National Research Council nutrient recommendation publication for poultry was published in 1994 and the recommendations for broilers, laying hens, and turkeys based on data published from 1952-1983, 1983-1987, and 1954-1986, respectively.
Genetic progress has greatly changed performance of these poultry species since then, so industry nutritionists have limited resources to refer to requirements for their modern poultry strains. Further, variation in nutrient utilization due to health status, as well as nutrient variability within ingredients results in the need for feeding above the minimum P requirement of the bird (i.e. safety margins). (Please also see Variation in Nutrient Utilization by Poultry and Ingredient Composition Factsheet.)
When poultry are fed closer to requirements and strategies are implemented to improve phytate-P digestibility, reductions in the amount of P excreted by the bird can be 30 to 40% (Applegate and Angel, unpublished work) depending on how much P is currently being fed. Present commercial poultry strains are more efficient in utilizing nutrients and the present commercial feeds are better formulated to meet the requirements of the rapidly growing bird (Havenstein et al., 1994). For example, nitrogen (N) and P excretion per kg live weight produced was 55 and 69% less, respectively in a 1991 commercial broiler strain versus a 1957 commercial broiler strain when fed the same diet. Considerable variation exists within the literature, however, for utilization of different nutrients. Much of the variation can be attributable to feeding of different ingredients, ages, strains, rearing environment, and/or health status.
Definition of Terms
There exists a great deal of confusion related to the terms used for the different forms of P. Total P (tP) is generally referred to as P and encompasses any and all forms of P. Available P (aP) refers to the P that is absorbed from the diet into the animal (i.e., feed P minus P within the distal ileum). Retained P refers to the P that stays in the body (i.e., feed P minus excreta P).
Available P values have to be determined by conducting animal availability trials that are time consuming and costly. Nutrient requirements of poultry are averages and can have large error factors associated with them. These errors are present, in part, because biological availability is not a static number. Biological availability of P can vary depending on dietary factors such as the level of other nutrients (calcium, vitamin D, micro-minerals, etc.) in the diet, the relationship between the level of other nutrients and P in the diet as well as the type and level of P in the diet. Other factors affecting availability are environment, management, and age as well as sex, strain, and health status of the animal.
As mentioned earlier, most of the P in seed-based plant ingredients is present in the phytin molecule and is referred to as PP. The P that is not bound to the phytin molecule is referred to as non-phytin P (nPP). This nPP can be chemically determined by subtracting analyzed PP from analyzed tP. Typically, total P is determined via inductively coupled spectroscopy (ICP) or colormetrically. Diet concentration of PP is much more difficult and can determined through different chromatographic methods. Notably, PP can not be analyzed via NIR. A key difference between aP and nPP is that the term aP includes absorbed inorganic as well as organic P (including PP), whereas the nPP excludes any available PP.
Phosphorus Availability for Utilization from Inorganic and organic sources
Inorganic sources. Before going any further, it is important to clarify terms related to P levels and availability in inorganic feed ingredients. Most reports published on the availability of P in inorganic sources use the concept/method of "biological value". Biological value of inorganic sources refers to the relative P availability, relative to a "standardized" P source (typically monosodium phosphate), which is usually given a 100% relative biological value. Often these trials are conducted utilizing a) slope response or b) in vitro solubility in water, acid, or ammonium citrate. "Biological value", however, is often confused with "digestibility" or "availability" of that source. Most of the literature typically utilizes the "biological value" approach for determining the relative "value" of an ingredient, but often does not measure the digestibility of the P source. The few reports that have measured digestibility of P from inorganic sources have noted that they can range from 87% for monocalcium phosphate to 76% for defluorinated phosphate (Table 1).
Table 1. Apparent utilization of phosphorus from inorganic sources by broiler chickens as determined under deficiency conditions.
1 Retainable P determined through broken line slope response.
Notably, when most of these studies determined apparent retention of P from each of the inorganic sources noted above, the majority of studies were within the deficiency range. As such, Leske and Coon noted dramatic reductions in retention from monocalcium phosphate as the phosphorus concentration approached the requirement (98% at half of the requirement to 59% retention at requirement). Waldroup (2002) noted that nearly 50% of excreted P, therefore, is likely of inorganic origin.
Generally, P must be in the phosphate form to be absorbed by poultry and swine. As phosphates are heated, pyro- and meta- complexes are formed which greatly reduce the availability of inorganic sources. Other factors that substantially affect inorganic P source availability include: hydration of source, particle size (larger size typically increases availability), and contaminants (complexing with elements such as aluminum can reduce availability).
Organic Sources. Phytin-P content in grains can be highly variable (Table 2). Factors influencing this variability are still unknown, but soil and environmental factors may affect this content (Cossa et al., 1997, Raboy and Dickinson, 1993). Raboy and Dickinson (1993) reported that the magnitude of the effect of soil P on soybean seed phytic acid was variety specific. Regardless of variety they found that phytic acid content increased as soil P availability increased. Non-phytic acid P levels in the seed, however, did not change. There is also limited information on potential variability in the availability of PP within an ingredient and on how diet manufacturing process may affect this availability. Variability in PP content in grains and relative bioavailability and digestibility from inorganic P sources has led to substantial safety margins in commercial diet formulation. For all practical purposes, these over-formulations may have the greatest influence on total and soluble P content of in excreta and litter.
Broilers - Phosphorus Requirement
The NRC (1994) nPP recommendations for broilers are based on peer-reviewed research published between 1952 and 1983 (Table 3). But, the present commercial bird is very different from commercial birds available prior to 1983, due in part to genetic selection as well as management practice changes and feed related changes (Havenstein et al., Numerous studies have recently been conducted to determine P requirement for young broilers up to three-week of age when phytase was added to the diet. Limited research has been done to determine the P requirement in the finisher and withdrawal phases either with or without phytase. The most recent information on the P requirement of broilers is presented in Table 4. 1994; Williams et al., 2000).
Table 2. Phytin-phosphorus (PP) content of feed ingredients as a percent of total phosphorus (TP) (data per Nelson et al., 1968; Cossa et al., 1997, and Barrier-Guillot et al., 1996a).
Table 3. NRC (1994) requirement for non-phytate phosphorus (nPP) for broilers.
Table 4. Recent reearch on phosphorous requirements in broilers.
1 Calcium, 2 Phosphorous (P), 3 Non-phytate P, 4 Available P, 5 Phytate P. a Weight in grams at the end of the age phase. b Not specified
CLICK HERE TO ENLARGE THE IMAGE
One of the important factors to be kept in mind while determining requirements for different phases is the carry-over effect of previous nutrition. When the bird is fed a sufficient amount of P and Ca during the starter, grower and finisher phases, the removal of any added nPP and Ca in the withdrawal phase, will not affect the performance of the bird (Skinner et al., 1992a and b; Angel et al., 2000a), but can have effects on bone integrity and well-being of the bird. When the bird is fed sufficient P during earlier phases and less than the P required, in the later phases, then P from bone will be used to meet the other P needs of the body.
The degree and length of mineral deficiency is important as both of these determine the structural integrity of bone. The question remains to be answered as to what level of bone integrity is needed such that no changes in processing plant downgrades versus current levels are observed. If bone integrity is compromised by feeding low levels of dietary nPP, then processing losses related to breakage of femurs, broken drumsticks, cartilage separation associated with the rib cage, blood splash of meats and fractures could increase (Moran and Todd, 1994; Chen and Moran, 1995).
Laying Hen Phosphorus requirements
Of all the poultry species, the laying hen industry feeds typically much more P relative to the requirement, largely because of concerns of inadequate mineralization of egg shells and skeletal abnormalities resulting in poor egg production, morbidity, and mortality. Due to previous selection of certain laying hens strains for early maturation and increased egg size, hens are, therefore, typically fed 350 to 450 mg of nPP/hen/day what recent research considers to be nearly twice what is required (Table 5).
As mentioned previously, valid industry concerns are variation in diet intake and variation in ingredient P content exist. Assuming the cost of dicalcium phosphate of $370 a ton, producers could save $1489 per year per 100,000 hens on dicalcium phosphate for every 100 mg/hen/day reduction in hen nPP intake.
Turkey Phosphorus Requirements
Despite the NRC (1994) recommendations being based on turkey experiments from 1954 to 1986. They appear to be consistent with the current needs of the turkey (Roberson et al., 2000; Roberson and Fulton, 2000; Thompson et al. 2002). The current NRC (1994) recommendations for turkeys are listed in Table 6. As mentioned with the other specie, valid concerns of the industry for variation in diet intake, intestinal health affecting nutrient digestibility and absorption, and variation in ingredient P content exist. The turkey industry also has long standing problems with skeletal integrity. Currently, this issue is at the forefront as femur breakage is occurring during the latter phases of turkey tom production (15 + weeks of age).
Table 5. Recent research on non-phytate phosphorus (nPP) requirements in laying hens
Table 6. NRC (1994) requirement for non-phytate phosphorus (nPP) for turkeys.
Summary
When poultry are fed closer to requirements and strategies are implemented to improve phytate-P digestibility, reductions in the amount of P excreted by the bird can be 30 to 40% depending on how much P is currently being fed. The poultry industry, however, currently utilizes substantial safety margins for formulation of P, due largely in part to uncertainty of nutrient requirements and ingredient P variability. Dietary mass reduction of P eaten and improvement in phytate-P utilization, therefore, can have dramatic impacts on the amount of P excreted.
References
Angel, R., T. J. Applegate, and M. Christman, 2000a. Effect of dietary non-phytate phosphorus (nPP) on
performance and bone measurements in broilers fed on a four-phase feeding system. Poultry Science, 79
(Suppl. 1): 21-22.
Angel, R., T. J. Applegate, M. Christman and A.D. Mitchell, 2000b. Effect of dietary non-phytate phosphorus (nPP) level on broiler performance and bone measurements in the starter and grower phase. Poultry Science, 79 (Suppl. 1): 22.
Barrier-Guillot, B., P. Casado, P. Maupetit, C. Jondreville, and F. Gatel, 1996a. Wheat phosphorus availability: 1-In vitro study; Factors affecting endogenous phytasic activity and phytic phosphorus content. J. Sci. Food Agric. 70:62-68.
Boling, S. D., M. W. Douglas, M. L. Johnson, X. Wang, C. M. Parsons, K. W. Koelkebeck, and R. A. Zimmerman. 2000b. The effects of dietary available phosphorus levels and phytase on performance of young and older laying hens. Poultry Sci. 78:79:224οΏ½230.
Boling, S.D., M. W. Douglas, R. B. Shirley, C. M. Parsons, and K. W. Koelkebeck. 2000b. The effects of various dietary levels of phytase and available phosphorus on performance of laying hens. Poult. Sci. 79:535οΏ½538
Chen, X. and E. T. Moran, 1995. The withdrawal feed of broilers: Carcass responses to dietary phosphorus. J. Appl. Poultry Res. 4:69-82.
Coon, C.N., S. Seo, and M.K. Manangi. 2007. The determination of retainable phosphorus, relative biological availability, and relative biological value of phosphorus sources for broilers. Poult. Sci. 86:857-868.
Cossa, J., K. Oloffs, H. Kluge, and H. Jeroch. 1997. Investigation into the TP and PP content in different varieties of grain maize. 11th European Symp. Poult. Nutr., Proc. World's Poult. Sci. Assoc., Faaberg, Denmark. pp 444-446.
Dhandu, A.S., and R. Angel. 2003. Broiler nonphytin phosphorus requirement in the finisher and withdrawal phases of a commercial four phase feeding system. Poult. Sci. 82:1257-1265.
Gordon, R. W., and D. A. Roland, 1997. Performance of commercial laying hens fed various phosphorus levels, with and without supplemental phytase. Poultry Sci. 76:1172-1177.
Havenstein, G.B., P.R. Ferket, S.E. Scheidler, and B.T. Larson. 1994. Growth, livability, and feed conversion of 1991 vs 1957 broilers when fed typical - 1957 and 1991 broiler diets. Poult, Sci. 73:1785-1794.
Keshavarz, K. 2003. The effect of different levels of non-phytate phosphorus with and without phytase on the performance of four strains of laying hens. Poult. Sci. 82:71-91
Leske, K., and C.N. Coon. 2002. The development of feedstuff retainable phosphorus values for broilers. Poult. Sci. 81:1681-1693.
Ling, B., C. R. Angel, T. J. Applegate, N. G. Zimmermann and A. S. Dhandu, 2000. The nonphytate requirement of broilers in a four phase feeding program. Poultry Sci. 79 (Suppl. 1):11.
Moran, E. T. Jr., and M. C. Todd, 1994. Continous submarginal phosphorus with broilers and the effect of preslaughter transportation: Carcass defects, further-processing yields, and tibia-femur integrity. Poultry Sci. 73:1448-1457.
National Research Council, 1974. Nutrient requirements of poultry. 7th revised edition. National Academy Press, Washington, DC.
National Research Council, 1984. Nutrient requirements of poultry. 8th revised edition. National Academy Press, Washington, DC.
National Research Council, 1994. Nutrient requirements of poultry. 9th revised edition. National Academy Press, Washington, DC.
Nelson, T.S., L.W. Ferrara, and N.L. Storer. 1968. Phytin content of feed ingredients derived from plants. Poult. Sci. 67:1372-1374.
Raboy, V., and D. B. Dickinson, 1993. Phytic acid levels in seeds of Glycine max and G. soja as influenced by phosphorus status. Crop Sci. 33:1300-1305.
Rao, S. V. R., V. R. Reddy and V. R. Reddy, 1999. Non-phytin requirements of commercial broilers and white leghorn layers. Ani. Feed Sci and Tech. 80:1-10.
Roberson, K.D., M.W. Klunzinger, M.F. Ledwaba, A.P. Rahn, M.W. Orth, R. M. Fulton, and B.P. Marks. 2000a. Effects of dietary calcium and phosphorus regimen on growth performance, bone strength and carcass quality and yield of Large White tom turkeys. Poult. Sci. 79 (Suppl. 1):68.
Roberson, K.D. and R.M. Fulton. 2000b. Estimation of the calcium and phosphorus requirements of 4.5 to 12 kg commercial tom turkeys. Poult. Sci. 79(Suppl. 1):98.
Skinner, J. T., A. L. Izat and P. W. Waldroup, 1992a. Effects of removal of supplemental calcium and phosphorus from broiler finisher diets. J. Appl. Poultry Res. 1:42-47.
Skinner, J. T., and M. H. Adams, S. E. Watkins and P. W. Waldroup, 1992b. Effects of calcium and nonphytate phosphorus levels fed during 42 to 56 days of age on performance and bone strength of male broilers. J. Appl. Poultry Res. 1:167-171.
Thompson, K.L., T.J. Applegate, R. Angel, K. Ondracek, and P. Jaynes. 2002. Effect of phosphorus level, 25-hydroxycholecalciferol (HyD), and phytase supplementation on performance of male turkeys from 0 to 18 weeks of age. Poult. Sci. 81(Suppl. 1):13.
van der Klis, J.D., H.A.J. Versteegh, and C.W. Scheele. 1994. Practical enzyme use in poultry diets: phytase and NSP enzymes. Carolina Poult. Nutr. Conf. Proc.pp. 113-128.
van der Klis, J.D. and H.A.J. Versteegh. 1996 Phosphorus nutrition in broilers. Pages 71-83 in: Recent Advances in Animal Nutrition. Edit.: P. C. Garnsworty, J. Wiseman, and W. Haresign. Nottingham University press, Nottingham, UK.
van der Klis, J. D., H.A.J. Versteegh, P.C.M. Simons, and A. K. Kies, 1997. The efficacy of phytase in corn-soybean meal-based diets for laying hens. Poultry Sci. 76:1535-1542.
Waldroup, P. W., J. H. Kersey, E. A. Saleh, C. A. Fritts, F. Yan, H. L. Stilborn, R. C. Crum, Jr., and V. Raboy, 2000. Nonphytate phosphorus requirement and phosphorus excretion of broilers fed diets composed of normal or high available phosphate corn with and without microbial phytase. Poultry Sci. 79:1451-1459.
Waldroup, P.W. 2002. Phosphorus, phytase, and the environment: a retrospective look. Proc. MD Nutr. Conf. Feed Manufact. 49:195-202.
Williams, B., S. Solomon, D. Waddington, B. Thorp, and C. Farquharson. 2000. Skeletal development in the meat-type chicken. British Poultry Sci. 41: 141-149.
Yan, F., J. H. Kersey and P. W. Waldroup, 2001. Phosphorus requirements of broiler chicks three to six weeks of age as influenced by phytase supplementation. Poultry Sci. 80:455-459.
Project Information
Detailed information about training and certification in Feed Management can be obtained from Joe Harrison, Project Leader, or Becca White, Project Manager.
Author Information
Todd J. Applegate - Purdue University
Roselina Angel - University of Maryland, College Park
________________________________________
Author: Todd J. Applegate (Purdue University); Roselina Angel (University of Maryland, College Park) - Purdue University Cooperative Extension Service, Animal Sciences publication AS-583-W
Publication date: 07/21/2008
This fact sheet has been developed to support the implementation of the Natural Resources Conservation Service Feed Management 592 Practice Standard. The Feed Management 592 Practice Standard was adopted by NRCS in 2003 as another tool to assist with addressing resource concerns on livestock and poultry operations. Feed management can assist with reducing the import of nutrients to the farm and reduce the excretion of nutrients in manure.
Phosphorus (P) is one of the essential minerals for all animals. It plays a critical role in cellular metabolism, as a part of the energy currency of the cell, in cellular regulatory mechanisms, and in bone. Bone is the main storage organ for P containing 85% of the body's total P. Through its involvement in these metabolic and structural processes, P is essential for animals to attain their optimum genetic potential in growth and feed efficiency as well as skeletal development. Because of the key role of P in bone development and mineralization, the requirements of the animal for this mineral are highest during the time the animal is growing.
In diets of non-ruminant animals, such as broilers, the challenge in P nutrition is how to best make available to the animal, the P that is present in the diet. Most poultry diets are primarily composed of plantbased ingredients. In plants, P is present in different forms such as attached to organic molecules like phospholipids and proteins but most is present as part of the phytic acid molecule. Phytic acid P is variably available to poultry (0 to 50%), and in order to meet the meet the P needs of the bird, inorganic P must be added to the diet. The enzyme, phytase, can liberate much of this P. (For further information on phytase and other P reduction strategies, please refer to Phytase and Other Phosphorus Reducing Feed Ingredients Factsheet.)
Overfeeding of dietary P is common commercially, with excesses of 20 to 100% over published requirements commonly observed. Part of this overfeeding is due to the lack of a centralized, up-to-date publication on poultry P requirements. Currently, the last National Research Council nutrient recommendation publication for poultry was published in 1994 and the recommendations for broilers, laying hens, and turkeys based on data published from 1952-1983, 1983-1987, and 1954-1986, respectively.
Genetic progress has greatly changed performance of these poultry species since then, so industry nutritionists have limited resources to refer to requirements for their modern poultry strains. Further, variation in nutrient utilization due to health status, as well as nutrient variability within ingredients results in the need for feeding above the minimum P requirement of the bird (i.e. safety margins). (Please also see Variation in Nutrient Utilization by Poultry and Ingredient Composition Factsheet.)
When poultry are fed closer to requirements and strategies are implemented to improve phytate-P digestibility, reductions in the amount of P excreted by the bird can be 30 to 40% (Applegate and Angel, unpublished work) depending on how much P is currently being fed. Present commercial poultry strains are more efficient in utilizing nutrients and the present commercial feeds are better formulated to meet the requirements of the rapidly growing bird (Havenstein et al., 1994). For example, nitrogen (N) and P excretion per kg live weight produced was 55 and 69% less, respectively in a 1991 commercial broiler strain versus a 1957 commercial broiler strain when fed the same diet. Considerable variation exists within the literature, however, for utilization of different nutrients. Much of the variation can be attributable to feeding of different ingredients, ages, strains, rearing environment, and/or health status.
Definition of Terms
There exists a great deal of confusion related to the terms used for the different forms of P. Total P (tP) is generally referred to as P and encompasses any and all forms of P. Available P (aP) refers to the P that is absorbed from the diet into the animal (i.e., feed P minus P within the distal ileum). Retained P refers to the P that stays in the body (i.e., feed P minus excreta P).
Available P values have to be determined by conducting animal availability trials that are time consuming and costly. Nutrient requirements of poultry are averages and can have large error factors associated with them. These errors are present, in part, because biological availability is not a static number. Biological availability of P can vary depending on dietary factors such as the level of other nutrients (calcium, vitamin D, micro-minerals, etc.) in the diet, the relationship between the level of other nutrients and P in the diet as well as the type and level of P in the diet. Other factors affecting availability are environment, management, and age as well as sex, strain, and health status of the animal.
As mentioned earlier, most of the P in seed-based plant ingredients is present in the phytin molecule and is referred to as PP. The P that is not bound to the phytin molecule is referred to as non-phytin P (nPP). This nPP can be chemically determined by subtracting analyzed PP from analyzed tP. Typically, total P is determined via inductively coupled spectroscopy (ICP) or colormetrically. Diet concentration of PP is much more difficult and can determined through different chromatographic methods. Notably, PP can not be analyzed via NIR. A key difference between aP and nPP is that the term aP includes absorbed inorganic as well as organic P (including PP), whereas the nPP excludes any available PP.
Phosphorus Availability for Utilization from Inorganic and organic sources
Inorganic sources. Before going any further, it is important to clarify terms related to P levels and availability in inorganic feed ingredients. Most reports published on the availability of P in inorganic sources use the concept/method of "biological value". Biological value of inorganic sources refers to the relative P availability, relative to a "standardized" P source (typically monosodium phosphate), which is usually given a 100% relative biological value. Often these trials are conducted utilizing a) slope response or b) in vitro solubility in water, acid, or ammonium citrate. "Biological value", however, is often confused with "digestibility" or "availability" of that source. Most of the literature typically utilizes the "biological value" approach for determining the relative "value" of an ingredient, but often does not measure the digestibility of the P source. The few reports that have measured digestibility of P from inorganic sources have noted that they can range from 87% for monocalcium phosphate to 76% for defluorinated phosphate (Table 1).
Table 1. Apparent utilization of phosphorus from inorganic sources by broiler chickens as determined under deficiency conditions.
1 Retainable P determined through broken line slope response.
Notably, when most of these studies determined apparent retention of P from each of the inorganic sources noted above, the majority of studies were within the deficiency range. As such, Leske and Coon noted dramatic reductions in retention from monocalcium phosphate as the phosphorus concentration approached the requirement (98% at half of the requirement to 59% retention at requirement). Waldroup (2002) noted that nearly 50% of excreted P, therefore, is likely of inorganic origin.
Generally, P must be in the phosphate form to be absorbed by poultry and swine. As phosphates are heated, pyro- and meta- complexes are formed which greatly reduce the availability of inorganic sources. Other factors that substantially affect inorganic P source availability include: hydration of source, particle size (larger size typically increases availability), and contaminants (complexing with elements such as aluminum can reduce availability).
Organic Sources. Phytin-P content in grains can be highly variable (Table 2). Factors influencing this variability are still unknown, but soil and environmental factors may affect this content (Cossa et al., 1997, Raboy and Dickinson, 1993). Raboy and Dickinson (1993) reported that the magnitude of the effect of soil P on soybean seed phytic acid was variety specific. Regardless of variety they found that phytic acid content increased as soil P availability increased. Non-phytic acid P levels in the seed, however, did not change. There is also limited information on potential variability in the availability of PP within an ingredient and on how diet manufacturing process may affect this availability. Variability in PP content in grains and relative bioavailability and digestibility from inorganic P sources has led to substantial safety margins in commercial diet formulation. For all practical purposes, these over-formulations may have the greatest influence on total and soluble P content of in excreta and litter.
Broilers - Phosphorus Requirement
The NRC (1994) nPP recommendations for broilers are based on peer-reviewed research published between 1952 and 1983 (Table 3). But, the present commercial bird is very different from commercial birds available prior to 1983, due in part to genetic selection as well as management practice changes and feed related changes (Havenstein et al., Numerous studies have recently been conducted to determine P requirement for young broilers up to three-week of age when phytase was added to the diet. Limited research has been done to determine the P requirement in the finisher and withdrawal phases either with or without phytase. The most recent information on the P requirement of broilers is presented in Table 4. 1994; Williams et al., 2000).
Table 2. Phytin-phosphorus (PP) content of feed ingredients as a percent of total phosphorus (TP) (data per Nelson et al., 1968; Cossa et al., 1997, and Barrier-Guillot et al., 1996a).
Table 3. NRC (1994) requirement for non-phytate phosphorus (nPP) for broilers.
Table 4. Recent reearch on phosphorous requirements in broilers.
1 Calcium, 2 Phosphorous (P), 3 Non-phytate P, 4 Available P, 5 Phytate P. a Weight in grams at the end of the age phase. b Not specified
CLICK HERE TO ENLARGE THE IMAGE
One of the important factors to be kept in mind while determining requirements for different phases is the carry-over effect of previous nutrition. When the bird is fed a sufficient amount of P and Ca during the starter, grower and finisher phases, the removal of any added nPP and Ca in the withdrawal phase, will not affect the performance of the bird (Skinner et al., 1992a and b; Angel et al., 2000a), but can have effects on bone integrity and well-being of the bird. When the bird is fed sufficient P during earlier phases and less than the P required, in the later phases, then P from bone will be used to meet the other P needs of the body.
The degree and length of mineral deficiency is important as both of these determine the structural integrity of bone. The question remains to be answered as to what level of bone integrity is needed such that no changes in processing plant downgrades versus current levels are observed. If bone integrity is compromised by feeding low levels of dietary nPP, then processing losses related to breakage of femurs, broken drumsticks, cartilage separation associated with the rib cage, blood splash of meats and fractures could increase (Moran and Todd, 1994; Chen and Moran, 1995).
Laying Hen Phosphorus requirements
Of all the poultry species, the laying hen industry feeds typically much more P relative to the requirement, largely because of concerns of inadequate mineralization of egg shells and skeletal abnormalities resulting in poor egg production, morbidity, and mortality. Due to previous selection of certain laying hens strains for early maturation and increased egg size, hens are, therefore, typically fed 350 to 450 mg of nPP/hen/day what recent research considers to be nearly twice what is required (Table 5).
As mentioned previously, valid industry concerns are variation in diet intake and variation in ingredient P content exist. Assuming the cost of dicalcium phosphate of $370 a ton, producers could save $1489 per year per 100,000 hens on dicalcium phosphate for every 100 mg/hen/day reduction in hen nPP intake.
Turkey Phosphorus Requirements
Despite the NRC (1994) recommendations being based on turkey experiments from 1954 to 1986. They appear to be consistent with the current needs of the turkey (Roberson et al., 2000; Roberson and Fulton, 2000; Thompson et al. 2002). The current NRC (1994) recommendations for turkeys are listed in Table 6. As mentioned with the other specie, valid concerns of the industry for variation in diet intake, intestinal health affecting nutrient digestibility and absorption, and variation in ingredient P content exist. The turkey industry also has long standing problems with skeletal integrity. Currently, this issue is at the forefront as femur breakage is occurring during the latter phases of turkey tom production (15 + weeks of age).
Table 5. Recent research on non-phytate phosphorus (nPP) requirements in laying hens
Table 6. NRC (1994) requirement for non-phytate phosphorus (nPP) for turkeys.
Summary
When poultry are fed closer to requirements and strategies are implemented to improve phytate-P digestibility, reductions in the amount of P excreted by the bird can be 30 to 40% depending on how much P is currently being fed. The poultry industry, however, currently utilizes substantial safety margins for formulation of P, due largely in part to uncertainty of nutrient requirements and ingredient P variability. Dietary mass reduction of P eaten and improvement in phytate-P utilization, therefore, can have dramatic impacts on the amount of P excreted.
References
Angel, R., T. J. Applegate, and M. Christman, 2000a. Effect of dietary non-phytate phosphorus (nPP) on
performance and bone measurements in broilers fed on a four-phase feeding system. Poultry Science, 79
(Suppl. 1): 21-22.
Angel, R., T. J. Applegate, M. Christman and A.D. Mitchell, 2000b. Effect of dietary non-phytate phosphorus (nPP) level on broiler performance and bone measurements in the starter and grower phase. Poultry Science, 79 (Suppl. 1): 22.
Barrier-Guillot, B., P. Casado, P. Maupetit, C. Jondreville, and F. Gatel, 1996a. Wheat phosphorus availability: 1-In vitro study; Factors affecting endogenous phytasic activity and phytic phosphorus content. J. Sci. Food Agric. 70:62-68.
Boling, S. D., M. W. Douglas, M. L. Johnson, X. Wang, C. M. Parsons, K. W. Koelkebeck, and R. A. Zimmerman. 2000b. The effects of dietary available phosphorus levels and phytase on performance of young and older laying hens. Poultry Sci. 78:79:224οΏ½230.
Boling, S.D., M. W. Douglas, R. B. Shirley, C. M. Parsons, and K. W. Koelkebeck. 2000b. The effects of various dietary levels of phytase and available phosphorus on performance of laying hens. Poult. Sci. 79:535οΏ½538
Chen, X. and E. T. Moran, 1995. The withdrawal feed of broilers: Carcass responses to dietary phosphorus. J. Appl. Poultry Res. 4:69-82.
Coon, C.N., S. Seo, and M.K. Manangi. 2007. The determination of retainable phosphorus, relative biological availability, and relative biological value of phosphorus sources for broilers. Poult. Sci. 86:857-868.
Cossa, J., K. Oloffs, H. Kluge, and H. Jeroch. 1997. Investigation into the TP and PP content in different varieties of grain maize. 11th European Symp. Poult. Nutr., Proc. World's Poult. Sci. Assoc., Faaberg, Denmark. pp 444-446.
Dhandu, A.S., and R. Angel. 2003. Broiler nonphytin phosphorus requirement in the finisher and withdrawal phases of a commercial four phase feeding system. Poult. Sci. 82:1257-1265.
Gordon, R. W., and D. A. Roland, 1997. Performance of commercial laying hens fed various phosphorus levels, with and without supplemental phytase. Poultry Sci. 76:1172-1177.
Havenstein, G.B., P.R. Ferket, S.E. Scheidler, and B.T. Larson. 1994. Growth, livability, and feed conversion of 1991 vs 1957 broilers when fed typical - 1957 and 1991 broiler diets. Poult, Sci. 73:1785-1794.
Keshavarz, K. 2003. The effect of different levels of non-phytate phosphorus with and without phytase on the performance of four strains of laying hens. Poult. Sci. 82:71-91
Leske, K., and C.N. Coon. 2002. The development of feedstuff retainable phosphorus values for broilers. Poult. Sci. 81:1681-1693.
Ling, B., C. R. Angel, T. J. Applegate, N. G. Zimmermann and A. S. Dhandu, 2000. The nonphytate requirement of broilers in a four phase feeding program. Poultry Sci. 79 (Suppl. 1):11.
Moran, E. T. Jr., and M. C. Todd, 1994. Continous submarginal phosphorus with broilers and the effect of preslaughter transportation: Carcass defects, further-processing yields, and tibia-femur integrity. Poultry Sci. 73:1448-1457.
National Research Council, 1974. Nutrient requirements of poultry. 7th revised edition. National Academy Press, Washington, DC.
National Research Council, 1984. Nutrient requirements of poultry. 8th revised edition. National Academy Press, Washington, DC.
National Research Council, 1994. Nutrient requirements of poultry. 9th revised edition. National Academy Press, Washington, DC.
Nelson, T.S., L.W. Ferrara, and N.L. Storer. 1968. Phytin content of feed ingredients derived from plants. Poult. Sci. 67:1372-1374.
Raboy, V., and D. B. Dickinson, 1993. Phytic acid levels in seeds of Glycine max and G. soja as influenced by phosphorus status. Crop Sci. 33:1300-1305.
Rao, S. V. R., V. R. Reddy and V. R. Reddy, 1999. Non-phytin requirements of commercial broilers and white leghorn layers. Ani. Feed Sci and Tech. 80:1-10.
Roberson, K.D., M.W. Klunzinger, M.F. Ledwaba, A.P. Rahn, M.W. Orth, R. M. Fulton, and B.P. Marks. 2000a. Effects of dietary calcium and phosphorus regimen on growth performance, bone strength and carcass quality and yield of Large White tom turkeys. Poult. Sci. 79 (Suppl. 1):68.
Roberson, K.D. and R.M. Fulton. 2000b. Estimation of the calcium and phosphorus requirements of 4.5 to 12 kg commercial tom turkeys. Poult. Sci. 79(Suppl. 1):98.
Skinner, J. T., A. L. Izat and P. W. Waldroup, 1992a. Effects of removal of supplemental calcium and phosphorus from broiler finisher diets. J. Appl. Poultry Res. 1:42-47.
Skinner, J. T., and M. H. Adams, S. E. Watkins and P. W. Waldroup, 1992b. Effects of calcium and nonphytate phosphorus levels fed during 42 to 56 days of age on performance and bone strength of male broilers. J. Appl. Poultry Res. 1:167-171.
Thompson, K.L., T.J. Applegate, R. Angel, K. Ondracek, and P. Jaynes. 2002. Effect of phosphorus level, 25-hydroxycholecalciferol (HyD), and phytase supplementation on performance of male turkeys from 0 to 18 weeks of age. Poult. Sci. 81(Suppl. 1):13.
van der Klis, J.D., H.A.J. Versteegh, and C.W. Scheele. 1994. Practical enzyme use in poultry diets: phytase and NSP enzymes. Carolina Poult. Nutr. Conf. Proc.pp. 113-128.
van der Klis, J.D. and H.A.J. Versteegh. 1996 Phosphorus nutrition in broilers. Pages 71-83 in: Recent Advances in Animal Nutrition. Edit.: P. C. Garnsworty, J. Wiseman, and W. Haresign. Nottingham University press, Nottingham, UK.
van der Klis, J. D., H.A.J. Versteegh, P.C.M. Simons, and A. K. Kies, 1997. The efficacy of phytase in corn-soybean meal-based diets for laying hens. Poultry Sci. 76:1535-1542.
Waldroup, P. W., J. H. Kersey, E. A. Saleh, C. A. Fritts, F. Yan, H. L. Stilborn, R. C. Crum, Jr., and V. Raboy, 2000. Nonphytate phosphorus requirement and phosphorus excretion of broilers fed diets composed of normal or high available phosphate corn with and without microbial phytase. Poultry Sci. 79:1451-1459.
Waldroup, P.W. 2002. Phosphorus, phytase, and the environment: a retrospective look. Proc. MD Nutr. Conf. Feed Manufact. 49:195-202.
Williams, B., S. Solomon, D. Waddington, B. Thorp, and C. Farquharson. 2000. Skeletal development in the meat-type chicken. British Poultry Sci. 41: 141-149.
Yan, F., J. H. Kersey and P. W. Waldroup, 2001. Phosphorus requirements of broiler chicks three to six weeks of age as influenced by phytase supplementation. Poultry Sci. 80:455-459.
Project Information
Detailed information about training and certification in Feed Management can be obtained from Joe Harrison, Project Leader, or Becca White, Project Manager.
Author Information
Todd J. Applegate - Purdue University
Roselina Angel - University of Maryland, College Park
EU Measures to Address Economic Crisis in Fish Sector
EU Measures to Address Economic Crisis in Sector
Friday, July 18, 2008
EU - The EU Council have adopted an the emergency package of restructuring measures to tackle the fuel crisis in the fisheries sector proposed by the Commission on 8 July.
The package will promote the restructuring of those segments of the European fishing fleet which have been hardest hit by the current fuel crisis, while cushioning its short-term social and economic impacts for those who commit to taking long-term action.
The core of the measures, adopted yesterday in the form of a Council Regulation, consist of temporary derogations to the European Fisheries Fund, allowing funds to be targeted quickly where they are needed most to address the underlying causes of the crisis, and to provide short-term support to the hardest-hit segments of the fleet that commit to restructure. Joe Borg, Commissioner for Maritime Affairs and Fisheries welcomed the constructive approach taken by Ministers to ensure rapid action.
"I am delighted that Council was able to reach political agreement on this urgent response to the fuel crisis and to bring about the necessary restructuring of the fisheries sector. Taken together, this package of measures represents a comprehensive and multi-pronged approach to the challenges which the sector is currently facing. It combines emergency measures with a whole new range of options for the long-term restructuring of the EU fleet. The Commission now stands ready to help the Member States to implement the measures as rapidly as possible, and to take full advantage of the opportunity they represent", commented Joe Borg.
The package constitutes a multi-dimensional approach to the current crisis, incorporating:
emergency measures, consisting principally of temporary cessation aid, to help fishermen cope with short-term pressures while the sector prepares a longer-term strategy;
a whole new range of restructuring measures for fleet segments which sign up to Fleet Adaptation Schemes, to be adopted at national level;
horizontal measures which fall outside the Fleet Adaptation Schemes, including increased EFF aid-intensity for fuel-saving equipment, expertise in relation to energy audits and restructuring plans, expanding the rank of beneficiaries eligible for early retirement under the EFF, and promoting research on fuel-saving technologies;
market measures under both the EFF and the Common Organisation of the Market, including a new price-monitoring observatory, and additional financial support for stakeholder-led initiatives, and
measures designed to facilitate the use of the EFF, so as to ensure fast and targeted action by Member States.
The Commission is delighted by the rapidity with which it has been possible to push through these vital emergency measures, thanks to excellent collaboration with both the Council and the European Parliament.
In its Communication, also published on 8 July, the Commission expressed its readiness to propose making additional funds available for this restructuring process. It also proposed examining possible changes to the de minimis rules for the fisheries sector and social aid in the form of decreased social security contributions, and analysis of these options continues.
Friday, July 18, 2008
EU - The EU Council have adopted an the emergency package of restructuring measures to tackle the fuel crisis in the fisheries sector proposed by the Commission on 8 July.
The package will promote the restructuring of those segments of the European fishing fleet which have been hardest hit by the current fuel crisis, while cushioning its short-term social and economic impacts for those who commit to taking long-term action.
The core of the measures, adopted yesterday in the form of a Council Regulation, consist of temporary derogations to the European Fisheries Fund, allowing funds to be targeted quickly where they are needed most to address the underlying causes of the crisis, and to provide short-term support to the hardest-hit segments of the fleet that commit to restructure. Joe Borg, Commissioner for Maritime Affairs and Fisheries welcomed the constructive approach taken by Ministers to ensure rapid action.
"I am delighted that Council was able to reach political agreement on this urgent response to the fuel crisis and to bring about the necessary restructuring of the fisheries sector. Taken together, this package of measures represents a comprehensive and multi-pronged approach to the challenges which the sector is currently facing. It combines emergency measures with a whole new range of options for the long-term restructuring of the EU fleet. The Commission now stands ready to help the Member States to implement the measures as rapidly as possible, and to take full advantage of the opportunity they represent", commented Joe Borg.
The package constitutes a multi-dimensional approach to the current crisis, incorporating:
emergency measures, consisting principally of temporary cessation aid, to help fishermen cope with short-term pressures while the sector prepares a longer-term strategy;
a whole new range of restructuring measures for fleet segments which sign up to Fleet Adaptation Schemes, to be adopted at national level;
horizontal measures which fall outside the Fleet Adaptation Schemes, including increased EFF aid-intensity for fuel-saving equipment, expertise in relation to energy audits and restructuring plans, expanding the rank of beneficiaries eligible for early retirement under the EFF, and promoting research on fuel-saving technologies;
market measures under both the EFF and the Common Organisation of the Market, including a new price-monitoring observatory, and additional financial support for stakeholder-led initiatives, and
measures designed to facilitate the use of the EFF, so as to ensure fast and targeted action by Member States.
The Commission is delighted by the rapidity with which it has been possible to push through these vital emergency measures, thanks to excellent collaboration with both the Council and the European Parliament.
In its Communication, also published on 8 July, the Commission expressed its readiness to propose making additional funds available for this restructuring process. It also proposed examining possible changes to the de minimis rules for the fisheries sector and social aid in the form of decreased social security contributions, and analysis of these options continues.
CME: Improvement in Corn and Soybean Conditions
CME: Improvement in Corn and Soybean Conditions
US - CME's Daily Livestock Report for 21st July, 2008.
The developments of the past two weeks in the grain and oilseed markets are the best news received by livestock feeders in some time — and the hit parade rolled on with another increase in crop conditions and another technical barrier broken in September corn futures.
E-Livestock Volume 7/21/08 7/18/08 7/14/08
LE (E-Live Cattle): 7,990 10,702 20,873
GF (E-Feeder Cattle): 1,167 1,166 895
HE (E-Lean Hogs): 13,882 13,833 19,053
USDA's weekly Crop Progress report indicates that the conditions of both the corn and soybean crops continued to improve last week. The data for corn is presented in the top chart at right. The percentage of the crop in good or excellent condition continued to climb — this week to 65%. That is 1% higher than last year, 3% higher than last week and roughly even with the 10-year average for this week. Warm days and nights have kept the crop improving steadily and widespread rains across the Midwest this weekend will, at least in most areas, provide enough moisture to get us through the critical pollination stage. The crop is still susceptible to heat (especially during pollination) and is still behind from a maturity standpoint. Only 34% of acres were silking as of Sunday compared to a 5-year average of 60%. An early frost would still be quite damaging.
A very non-scientific “windshield” survey of corn from central Iowa to central Illinois and all the way back across Missouri to Kansas City last Tuesday and Wednesday confirmed most of what we had heard about crop conditions. Parts of Iowa look very good while most still looks quite uneven and bottom ground is primarily planted to soybeans. Western Illinois looks EXCELLENT with even-appearing stands of tall corn that was pretty much full tasselled. Missouri looked quite uneven as well with bottom ground looking very bad (if it was still even in corn) and upland being somewhat uneven. Still, everyone is talking about how much the crop has improved in the past few weeks.
And the results are predictable — the largest 3-week break in corn prices since July 1996! We noted last Monday that September corn had broken through the 50-day average. It then penetrated a longterm uptrending support line at $6.34 on Thursday and today broke a minor support line at $5.90. The price of September corn has fallen $2.14/bushel (27.6%) since June 27. All of the new-crop corn futures charts look virtually the same as this one though prices for other contracts have not penetrated their support lines in the $6.00 range — YET.
Though slow to the party, soybean meal prices have jumped on the downward slide as well with contracts down $50 to $70/ton since peaking on July 11. Perhaps more noteworthy, EVERY soybean meal contract on the board penetrated its 50-day moving average in today’s trading.
How important are these reductions? These declines have reduced hog feed costs by $45-$50 per ton through next July and $30-$40 per ton from August through October 2009. Those feed cost declines have taken roughly $10/cwt carcass off the breakeven costs of hogs next summer, leaving that magic number at about $86 — lower than any LH futures contract from April 2009 forward.
US - CME's Daily Livestock Report for 21st July, 2008.
The developments of the past two weeks in the grain and oilseed markets are the best news received by livestock feeders in some time — and the hit parade rolled on with another increase in crop conditions and another technical barrier broken in September corn futures.
E-Livestock Volume 7/21/08 7/18/08 7/14/08
LE (E-Live Cattle): 7,990 10,702 20,873
GF (E-Feeder Cattle): 1,167 1,166 895
HE (E-Lean Hogs): 13,882 13,833 19,053
USDA's weekly Crop Progress report indicates that the conditions of both the corn and soybean crops continued to improve last week. The data for corn is presented in the top chart at right. The percentage of the crop in good or excellent condition continued to climb — this week to 65%. That is 1% higher than last year, 3% higher than last week and roughly even with the 10-year average for this week. Warm days and nights have kept the crop improving steadily and widespread rains across the Midwest this weekend will, at least in most areas, provide enough moisture to get us through the critical pollination stage. The crop is still susceptible to heat (especially during pollination) and is still behind from a maturity standpoint. Only 34% of acres were silking as of Sunday compared to a 5-year average of 60%. An early frost would still be quite damaging.
A very non-scientific “windshield” survey of corn from central Iowa to central Illinois and all the way back across Missouri to Kansas City last Tuesday and Wednesday confirmed most of what we had heard about crop conditions. Parts of Iowa look very good while most still looks quite uneven and bottom ground is primarily planted to soybeans. Western Illinois looks EXCELLENT with even-appearing stands of tall corn that was pretty much full tasselled. Missouri looked quite uneven as well with bottom ground looking very bad (if it was still even in corn) and upland being somewhat uneven. Still, everyone is talking about how much the crop has improved in the past few weeks.
And the results are predictable — the largest 3-week break in corn prices since July 1996! We noted last Monday that September corn had broken through the 50-day average. It then penetrated a longterm uptrending support line at $6.34 on Thursday and today broke a minor support line at $5.90. The price of September corn has fallen $2.14/bushel (27.6%) since June 27. All of the new-crop corn futures charts look virtually the same as this one though prices for other contracts have not penetrated their support lines in the $6.00 range — YET.
Though slow to the party, soybean meal prices have jumped on the downward slide as well with contracts down $50 to $70/ton since peaking on July 11. Perhaps more noteworthy, EVERY soybean meal contract on the board penetrated its 50-day moving average in today’s trading.
How important are these reductions? These declines have reduced hog feed costs by $45-$50 per ton through next July and $30-$40 per ton from August through October 2009. Those feed cost declines have taken roughly $10/cwt carcass off the breakeven costs of hogs next summer, leaving that magic number at about $86 — lower than any LH futures contract from April 2009 forward.
Vitamins and Minerals Important to Poultry
Vitamins and Minerals Important to Poultry
Achieving maximum health and performance of poultry requires nutritionally balanced diets, writes Dan L. Cunningham, Extension Coordinator at the University of Georgia.
One of the common issues with regard to backyard flocks relates to poor or inadequate feeding programmes that can lead to vitamin and mineral deficiencies for the birds. Vitamins and minerals are very important components of a chickens diet and unless a formulated ration is feed, it is likely that deficiencies will occur.
Poultry require all known vitamins except C. Some vitamins are soluble in fats, while others are soluble in water. Some of the symptoms of a vitamin deficiency are as follows:
Fat Soluble Vitamins
Vitamin A Decreased egg production, weakness and lack of growth
Vitamin D Thin shelled eggs, reduced egg production, retarded growth, rickets
Vitamin E Enlarged hocks, encephalomalacia (crazy chick disease)
Vitamin K Prolonged blood clotting, intramuscular bleeding
Water Soluble Vitamins
Thiamine (B1) Loss of appetite and death
Riboflavin (B2) Curly-toe paralysis, poor growth and poor egg production
Pantothenic Acid Dermatitis and lesions on mouth and feet
Niacin Bowed legs, inflammation of tongue and mouth cavity
Choline Poor growth, fatty liver, decreased egg production
Vitamin B12 Anaemia, poor growth, embryonic mortality
Folic Acid Poor growth, anaemia, poor feathering and egg production
Biotin Dermatitis on feet and around eyes and beak
Minerals are also important to the health and well-being of poultry. The following are some of the important minerals and symptoms of mineral deficiencies:
Minerals
Calcium Poor egg shell quality and poor hatchability, rickets
Phosphorus Rickets, poor egg shell quality and hatchability
Magnesium Sudden death
Manganese Perosis, poor hatchability
Iron Anaemia
Copper Anaemia
Iodine Goitre
Zinc Poor feathering, short bones
Cobalt Slow growth, mortality, reduced hatchability
As indicated above, vitamin and mineral deficiencies can produce numerous health problems for chickens including in some cases, death. Thus, to prevent nutritional deficiencies, or when deficiency symptoms are noted, feeding a balanced poultry diet with the required vitamins and minerals should be practised.
Achieving maximum health and performance of poultry requires nutritionally balanced diets, writes Dan L. Cunningham, Extension Coordinator at the University of Georgia.
One of the common issues with regard to backyard flocks relates to poor or inadequate feeding programmes that can lead to vitamin and mineral deficiencies for the birds. Vitamins and minerals are very important components of a chickens diet and unless a formulated ration is feed, it is likely that deficiencies will occur.
Poultry require all known vitamins except C. Some vitamins are soluble in fats, while others are soluble in water. Some of the symptoms of a vitamin deficiency are as follows:
Fat Soluble Vitamins
Vitamin A Decreased egg production, weakness and lack of growth
Vitamin D Thin shelled eggs, reduced egg production, retarded growth, rickets
Vitamin E Enlarged hocks, encephalomalacia (crazy chick disease)
Vitamin K Prolonged blood clotting, intramuscular bleeding
Water Soluble Vitamins
Thiamine (B1) Loss of appetite and death
Riboflavin (B2) Curly-toe paralysis, poor growth and poor egg production
Pantothenic Acid Dermatitis and lesions on mouth and feet
Niacin Bowed legs, inflammation of tongue and mouth cavity
Choline Poor growth, fatty liver, decreased egg production
Vitamin B12 Anaemia, poor growth, embryonic mortality
Folic Acid Poor growth, anaemia, poor feathering and egg production
Biotin Dermatitis on feet and around eyes and beak
Minerals are also important to the health and well-being of poultry. The following are some of the important minerals and symptoms of mineral deficiencies:
Minerals
Calcium Poor egg shell quality and poor hatchability, rickets
Phosphorus Rickets, poor egg shell quality and hatchability
Magnesium Sudden death
Manganese Perosis, poor hatchability
Iron Anaemia
Copper Anaemia
Iodine Goitre
Zinc Poor feathering, short bones
Cobalt Slow growth, mortality, reduced hatchability
As indicated above, vitamin and mineral deficiencies can produce numerous health problems for chickens including in some cases, death. Thus, to prevent nutritional deficiencies, or when deficiency symptoms are noted, feeding a balanced poultry diet with the required vitamins and minerals should be practised.
USEFUL LINKS
Useful links
ADAS www.adas.co.uk
Advisory Committee on Animal Feed www.food.gov.uk
Agricultural Industries Confederation (AIC) www.agindustries.org.uk
Agricultural Research Institute of N. Ireland www.arini.ac.uk
Agricultural Science Assiciation www.asaireland.ie
Association of American Feed Control Officials www.aafco.org
American Association of Animal Science www.asas.org
British Chicken Information Service www.britishchicken.co.uk
British Dairy Consortium www.britishdairyconsortium.com
British Egg Information Service www.britegg.co.uk
British Free Range Egg Producers www.bfrepa.co.uk
British Horse Society www.bhs.org.uk
British Society of Animal Science www.bsas.org.uk
British Turkey Information Service www.britishturkey.co.uk
c/o British Farming www.cobritishfarming.org.uk
Canadian Pork Council www.cpc-ccp.com
Canada Pork International www.canadapork.com
Danish Slaughter Houses www.danskeslagterier.dk
Dept. for the Environment, Food & Rural Affairs UK www.defra.gov.uk
Dept. of Agriculture & Food (Ireland) www.agriculture.gov.ie
Dept. of Agriculture & Rural Development (N. Ireland) www.dardni.gov.uk
E.U. Approved Feed Establishments ec.europa.eu/food
European Pet Food Industry Association www.fediaf.org
Farmers Union of Wales www.fuw.org.uk
Food Standards Agency www.food.gov.uk
Grain & Feed Trade Association www.gafta.com
Greenmount College www.greenmount.ac.uk
Home Grown Cereals Authority www.hgca.com
International Egg Commission www.internationalegg.com
Irish Agriculture & Food Development Authority www.teagasc.ie
Irish Farmers Association www.ifa.ie
Kansas State University www.ksu.edu
Livestock & Meat Commission for N. Ireland www.lmcni.com
Meat & Livestock Commission www.meatmatters.com
National Dairy Farm Association Scheme www.ndfas.ord.uk
National Farmers Union www.nfu.org.uk
National Farmers Union of Scotland www.nfus.org.uk
National Pig Association www.npa-uk.net
Noah UK medicines & special feed additives /zootechnicals www.noahcompendium.co.uk
Notification of reportable feed incident - regulations www.food.gov.uk
Notification of reportable feed incident - report www.food.gov.uk
N. Ireland Grain Trade Association www.nigta.co.uk
Nutrition Partners Inc www.nutritionpartners.ca
Nutrition Society www.nutsoc.org.uk
Organic Farmers & Growers www.organicfarmers.org.uk
Pedigree Systems www.pedsys.com
Pet Food Association of Canada www.pfac.com
Pet Food Manufacturers Association www.pfma.com
Pig Health.com www.pighealth.com
Pig Site UK www.thepigsite.com
Pigs UK Directory www.pigsuk.com
PorkNet (USA) www.porknet.com
Prairie Swine Centre, Saskatchewan www.prairieswine.ca
Premier Nutrition, UK www.premiernutrition.co.uk
Soil Association www.soilassociation.org
Ulster Farmers Union www.ufuni.org
Ultramix Formulation Software www.ultramix.co.uk
University of Nottingham www.nottingham.ac.uk
World Poultry Science Association www.wpsa-uk.com
ADAS www.adas.co.uk
Advisory Committee on Animal Feed www.food.gov.uk
Agricultural Industries Confederation (AIC) www.agindustries.org.uk
Agricultural Research Institute of N. Ireland www.arini.ac.uk
Agricultural Science Assiciation www.asaireland.ie
Association of American Feed Control Officials www.aafco.org
American Association of Animal Science www.asas.org
British Chicken Information Service www.britishchicken.co.uk
British Dairy Consortium www.britishdairyconsortium.com
British Egg Information Service www.britegg.co.uk
British Free Range Egg Producers www.bfrepa.co.uk
British Horse Society www.bhs.org.uk
British Society of Animal Science www.bsas.org.uk
British Turkey Information Service www.britishturkey.co.uk
c/o British Farming www.cobritishfarming.org.uk
Canadian Pork Council www.cpc-ccp.com
Canada Pork International www.canadapork.com
Danish Slaughter Houses www.danskeslagterier.dk
Dept. for the Environment, Food & Rural Affairs UK www.defra.gov.uk
Dept. of Agriculture & Food (Ireland) www.agriculture.gov.ie
Dept. of Agriculture & Rural Development (N. Ireland) www.dardni.gov.uk
E.U. Approved Feed Establishments ec.europa.eu/food
European Pet Food Industry Association www.fediaf.org
Farmers Union of Wales www.fuw.org.uk
Food Standards Agency www.food.gov.uk
Grain & Feed Trade Association www.gafta.com
Greenmount College www.greenmount.ac.uk
Home Grown Cereals Authority www.hgca.com
International Egg Commission www.internationalegg.com
Irish Agriculture & Food Development Authority www.teagasc.ie
Irish Farmers Association www.ifa.ie
Kansas State University www.ksu.edu
Livestock & Meat Commission for N. Ireland www.lmcni.com
Meat & Livestock Commission www.meatmatters.com
National Dairy Farm Association Scheme www.ndfas.ord.uk
National Farmers Union www.nfu.org.uk
National Farmers Union of Scotland www.nfus.org.uk
National Pig Association www.npa-uk.net
Noah UK medicines & special feed additives /zootechnicals www.noahcompendium.co.uk
Notification of reportable feed incident - regulations www.food.gov.uk
Notification of reportable feed incident - report www.food.gov.uk
N. Ireland Grain Trade Association www.nigta.co.uk
Nutrition Partners Inc www.nutritionpartners.ca
Nutrition Society www.nutsoc.org.uk
Organic Farmers & Growers www.organicfarmers.org.uk
Pedigree Systems www.pedsys.com
Pet Food Association of Canada www.pfac.com
Pet Food Manufacturers Association www.pfma.com
Pig Health.com www.pighealth.com
Pig Site UK www.thepigsite.com
Pigs UK Directory www.pigsuk.com
PorkNet (USA) www.porknet.com
Prairie Swine Centre, Saskatchewan www.prairieswine.ca
Premier Nutrition, UK www.premiernutrition.co.uk
Soil Association www.soilassociation.org
Ulster Farmers Union www.ufuni.org
Ultramix Formulation Software www.ultramix.co.uk
University of Nottingham www.nottingham.ac.uk
World Poultry Science Association www.wpsa-uk.com
More Norwegian fish suffer from diseases
More Norwegian fish suffer from diseases
Norwegian aqua farmers are facing major losses due to the salmon diseases ILA and PD. The spread of disease has shown strong increase over the past six months.
So far this year there are registered 16 outbreaks of ISA (infectious salmon anaemia) , and 62 cases of PD (pancreas disease). For both it is twice as many cases as in all of 2007.
Neither ISA nor PD are dangerous for humans, but much of the fish dies when infected, and must be used for animal feed. In addition it is also necessary to disinfect the nets, and often to replace equipment that is still in good order.
Norwegian aqua farmers are facing major losses due to the salmon diseases ILA and PD. The spread of disease has shown strong increase over the past six months.
So far this year there are registered 16 outbreaks of ISA (infectious salmon anaemia) , and 62 cases of PD (pancreas disease). For both it is twice as many cases as in all of 2007.
Neither ISA nor PD are dangerous for humans, but much of the fish dies when infected, and must be used for animal feed. In addition it is also necessary to disinfect the nets, and often to replace equipment that is still in good order.
Evialis: grain prices remain high
Evialis: grain prices remain high
French animal feed maker Evialis sees no reason for booming grain prices to fall because the main bullish factors are unlikely to disappear, its CEO said July 3rd.
Pierre Lefebvre said a main element was rising demand from fast-developing countries where a growing middle class eats more meat produced from cattle fattened with grain-based feed.
Prices would also continue to be buoyed by historically low grain stocks, strong demand to make grain-based biofuels and a likely continuation of the massive inflow of funds into commodities when other markets slump.
"As long as financial markets will be in the state they are now, the phenomenon will not change, and there will be in any case continuous upwards pressure," Lefebvre told Reuters in an interview. Animal feed is made from grains whose prices have mostly surged over the past year.
Although wheat prices fell in recent months, corn (maize) and soybean futures hit all-time highs on U.S. markets in the last few days on worries over U.S. crops.
"I can't see what objective factor could lead us to think that prices could relax and come back to levels that we have seen a few years ago," he said. "We are in a structural situation of high prices." He stressed, however, that volatility would prevail and that even if large crops could ease prices in some years, extremely low stocks would keep bullish pressure on markets. "We are in an alert zone (on stocks)," he said.
Lefebvre said the impact of high prices would be high on breeders and that many could go bankrupt due to that. Evialis had to raise prices of some of its key feed products by 40 to 50 percent in sympathy with grain markets. "We have the obligation, it's vital, to reflect the rises of the products we buy in our sale prices, which of course pushed much higher the prices of products sold to breeders and this could speed up a change in the sector," he said. "It's clear that many will not be able to take it," he said, stressing that grains account for a large part of meat prices.
French animal feed maker Evialis sees no reason for booming grain prices to fall because the main bullish factors are unlikely to disappear, its CEO said July 3rd.
Pierre Lefebvre said a main element was rising demand from fast-developing countries where a growing middle class eats more meat produced from cattle fattened with grain-based feed.
Prices would also continue to be buoyed by historically low grain stocks, strong demand to make grain-based biofuels and a likely continuation of the massive inflow of funds into commodities when other markets slump.
"As long as financial markets will be in the state they are now, the phenomenon will not change, and there will be in any case continuous upwards pressure," Lefebvre told Reuters in an interview. Animal feed is made from grains whose prices have mostly surged over the past year.
Although wheat prices fell in recent months, corn (maize) and soybean futures hit all-time highs on U.S. markets in the last few days on worries over U.S. crops.
"I can't see what objective factor could lead us to think that prices could relax and come back to levels that we have seen a few years ago," he said. "We are in a structural situation of high prices." He stressed, however, that volatility would prevail and that even if large crops could ease prices in some years, extremely low stocks would keep bullish pressure on markets. "We are in an alert zone (on stocks)," he said.
Lefebvre said the impact of high prices would be high on breeders and that many could go bankrupt due to that. Evialis had to raise prices of some of its key feed products by 40 to 50 percent in sympathy with grain markets. "We have the obligation, it's vital, to reflect the rises of the products we buy in our sale prices, which of course pushed much higher the prices of products sold to breeders and this could speed up a change in the sector," he said. "It's clear that many will not be able to take it," he said, stressing that grains account for a large part of meat prices.
Enzyme technology presented at WPC 2008
Enzyme technology presented at WPC 2008
New generation heat stable E. Coli phytases, improving the feeding value of distillers dried grains with solubles and enzyme solutions to maximise use of corn/soy diets were just some of the latest cutting edge research presented by Danisco Animal Nutrition at the World Poultry Congress, Brisbane, Australia, 30 June - 4 July 2008.
Dr Ceinwen Gilbert, Technical Services Manager, Danisco Animal Nutrition, presented a poster comparing the bioefficacy of two coated phytases for broilers fed corn/soybean meal based diets. The study concluded that the bacterial E. Coli phytase was more heat stable – E. Coli phytase recovery from the pelleted feed was on average 27% greater than P. Lycii phytase.
Broilers fed bacterial E. Coli phytase had significantly higher bodyweight gain and numerically higher tibia ash than broilers fed the fungal P. Lycii phytase. The superior bioefficacy of the bacterial E. Coli phytase was attributed to both the higher heat stability and the ability of the phytase to better release phytate bound phosphorus in the feed.
DDGS and enzymes
Soren Dalsgaard, a senior scientist with Danisco, presented a poster which examined how enzyme technology can be used to reduce certain anti-nutritional factors in DDGS. He reported that wheat DDGS increases gut viscosity in poultry, which reduces the nutrient digestibility and bird performance.
Adding a highly effective xylanase reduced the viscosity and potentially increased the feeding value of wheat DDGS. Supplementing wheat DDGS with enzymes offers producers the option to use DDGS in their poultry feeds to save costs, without compromising bird performance.
Enzyme mixture
Dr Aaron Cowieson, senior scientist at Danisco Animal Nutrition, presented two papers which examined how feed enzymes can improve the feeding value of corn/soy based diets. Adding a xylanase, amylase and protease enzyme combination to a corn/soy based broiler diet significantly improved the ileal digestibility of amino acids and improved the apparent metabolisable energy by 3%. The enzyme combination improved broiler weight gain by 6% and feed conversion by 5 points.
New generation heat stable E. Coli phytases, improving the feeding value of distillers dried grains with solubles and enzyme solutions to maximise use of corn/soy diets were just some of the latest cutting edge research presented by Danisco Animal Nutrition at the World Poultry Congress, Brisbane, Australia, 30 June - 4 July 2008.
Dr Ceinwen Gilbert, Technical Services Manager, Danisco Animal Nutrition, presented a poster comparing the bioefficacy of two coated phytases for broilers fed corn/soybean meal based diets. The study concluded that the bacterial E. Coli phytase was more heat stable – E. Coli phytase recovery from the pelleted feed was on average 27% greater than P. Lycii phytase.
Broilers fed bacterial E. Coli phytase had significantly higher bodyweight gain and numerically higher tibia ash than broilers fed the fungal P. Lycii phytase. The superior bioefficacy of the bacterial E. Coli phytase was attributed to both the higher heat stability and the ability of the phytase to better release phytate bound phosphorus in the feed.
DDGS and enzymes
Soren Dalsgaard, a senior scientist with Danisco, presented a poster which examined how enzyme technology can be used to reduce certain anti-nutritional factors in DDGS. He reported that wheat DDGS increases gut viscosity in poultry, which reduces the nutrient digestibility and bird performance.
Adding a highly effective xylanase reduced the viscosity and potentially increased the feeding value of wheat DDGS. Supplementing wheat DDGS with enzymes offers producers the option to use DDGS in their poultry feeds to save costs, without compromising bird performance.
Enzyme mixture
Dr Aaron Cowieson, senior scientist at Danisco Animal Nutrition, presented two papers which examined how feed enzymes can improve the feeding value of corn/soy based diets. Adding a xylanase, amylase and protease enzyme combination to a corn/soy based broiler diet significantly improved the ileal digestibility of amino acids and improved the apparent metabolisable energy by 3%. The enzyme combination improved broiler weight gain by 6% and feed conversion by 5 points.
India to plant record area of soybeans
India to plant record area of soybeans
// 24 jun 2008
Highest ever prices and early rainfall have pushed Asia's biggest supplier of soybean meal, India, to plant a record soybean crop for a second year in a row.
The area planted to soybeans may gain as much as 20% in the year beginning July from 8.85 million hectares (21.87 million acres) last year, Dinesh Shahra, managing director of India's biggest soybean processor Ruchi Soya Industries Ltd, said in an interview with Bloomberg.
India exports soybean meal to nations including China, Vietnam, Japan, Indonesia and South Korea. According to Shahra there is already a rush among farmers to secure enough soybean seeds ahead of sowing. Because of record prices farmers devote every inch of land available to the crop this year.
Favourable weather have stimulated farmers in the Indian state of Madhya Pradesh, which accounts for more than half the country's total output, to start planting soybeans 15 to 20 days earlier than normal. Early rains will further boost sowing and increase production.
Soybean production may rise to 9.47 m tonnes in the year ending June from 7.15 m tonnes a year earlier, according to the Indian Soybean Processors Association. Also in the western Indian state of Maharashtra may decide to plant soybeans instead of cotton and sugar cane since local soybean prices have more than doubled.
Export boost
Increased production in India may boost the country’s meal exports to Southeast Asian countries seeking cheaper alternatives to soybean meals or corn from Latin America, the US and China. Supply from Argentina is tight and US meal is more expensive for imports in Asia.
India's overseas sales of soybean meal may surpass 4.5 m tonnes for the year through September 2008, according to the Soybean Processors Association. Exports totalled 4.1 m tonnes between October and May, 31 percent more than a year earlier. Indian usually exports more than 70% of its output.
// 24 jun 2008
Highest ever prices and early rainfall have pushed Asia's biggest supplier of soybean meal, India, to plant a record soybean crop for a second year in a row.
The area planted to soybeans may gain as much as 20% in the year beginning July from 8.85 million hectares (21.87 million acres) last year, Dinesh Shahra, managing director of India's biggest soybean processor Ruchi Soya Industries Ltd, said in an interview with Bloomberg.
India exports soybean meal to nations including China, Vietnam, Japan, Indonesia and South Korea. According to Shahra there is already a rush among farmers to secure enough soybean seeds ahead of sowing. Because of record prices farmers devote every inch of land available to the crop this year.
Favourable weather have stimulated farmers in the Indian state of Madhya Pradesh, which accounts for more than half the country's total output, to start planting soybeans 15 to 20 days earlier than normal. Early rains will further boost sowing and increase production.
Soybean production may rise to 9.47 m tonnes in the year ending June from 7.15 m tonnes a year earlier, according to the Indian Soybean Processors Association. Also in the western Indian state of Maharashtra may decide to plant soybeans instead of cotton and sugar cane since local soybean prices have more than doubled.
Export boost
Increased production in India may boost the country’s meal exports to Southeast Asian countries seeking cheaper alternatives to soybean meals or corn from Latin America, the US and China. Supply from Argentina is tight and US meal is more expensive for imports in Asia.
India's overseas sales of soybean meal may surpass 4.5 m tonnes for the year through September 2008, according to the Soybean Processors Association. Exports totalled 4.1 m tonnes between October and May, 31 percent more than a year earlier. Indian usually exports more than 70% of its output.
Crop damage makes corn price jump
Crop damage makes corn price jump
After passing the $7 barrier last week continuous rain and flooding in the Midwest of the US have pushed up corn prices further nearing $8 a bushel.
Corn prices crept closer to an unmatched $8 a bushel this week on concerns that damage to cornfields from Midwest flooding is worse than previously thought. The US Department of Agriculture publish its crop estimates later this month, but also suggested it will do a special assessment of how many acres have been lost to massive flooding that struck the Midwest last week.
Estimates of the toll vary widely, from 2 million to 5 million corn acres damaged or destroyed by floodwaters. Corn for December delivery rose as high as $7.85 a bushel on the Chicago Board of Trade before easing back to settle at $7.80, up 4 cents.
In the most-actively traded July contract, prices rose to $7.50 a bushel before falling back to settle 4 cents higher at $7.4625. Since corn in the US accounts for half of the livestock owners’ production costs high corn prices mean consumers eventually will face more expensive meat and chicken. Livestock owners are forced to cull their herds and flocks to cope with rising corn-based animal feed costs.
Strong demand
It is not only the weather that is driving up the prices. Before the floods corn prices were already up more than 80% in the past year, because developing countries like China and India scramble for shrinking grain supplies to feed fast-growing populations and livestock. Demand from US ethanol producers who use corn as their main feedstock has also pushed prices higher, drawing criticism from poor countries.
Counter movements
Record corn prices have already begun to curb demand. Analysts have lowered the US forecast for ethanol capacity to 9.5 billion gallons from 10 billion gallons as the biofuel producers slow production until corn prices ease. Also Taiwan has announced it will buy sorghum and barley as a cheaper way to feed livestock
After passing the $7 barrier last week continuous rain and flooding in the Midwest of the US have pushed up corn prices further nearing $8 a bushel.
Corn prices crept closer to an unmatched $8 a bushel this week on concerns that damage to cornfields from Midwest flooding is worse than previously thought. The US Department of Agriculture publish its crop estimates later this month, but also suggested it will do a special assessment of how many acres have been lost to massive flooding that struck the Midwest last week.
Estimates of the toll vary widely, from 2 million to 5 million corn acres damaged or destroyed by floodwaters. Corn for December delivery rose as high as $7.85 a bushel on the Chicago Board of Trade before easing back to settle at $7.80, up 4 cents.
In the most-actively traded July contract, prices rose to $7.50 a bushel before falling back to settle 4 cents higher at $7.4625. Since corn in the US accounts for half of the livestock owners’ production costs high corn prices mean consumers eventually will face more expensive meat and chicken. Livestock owners are forced to cull their herds and flocks to cope with rising corn-based animal feed costs.
Strong demand
It is not only the weather that is driving up the prices. Before the floods corn prices were already up more than 80% in the past year, because developing countries like China and India scramble for shrinking grain supplies to feed fast-growing populations and livestock. Demand from US ethanol producers who use corn as their main feedstock has also pushed prices higher, drawing criticism from poor countries.
Counter movements
Record corn prices have already begun to curb demand. Analysts have lowered the US forecast for ethanol capacity to 9.5 billion gallons from 10 billion gallons as the biofuel producers slow production until corn prices ease. Also Taiwan has announced it will buy sorghum and barley as a cheaper way to feed livestock
Phosphate crisis demands more phytase
Phosphate crisis demands more phytase
Microbial phytases have been used for almost 20 years in animal nutrition to release plant-bound phytate phosphorous. Phytases become more important as phosphates become scarcer.
Phytases in diets for monogastric animals can contribute significantly to overcome the current shortage in feed phosphates, according to The European Feed Additives and Premixtures Association (FEFANA). At present in most of feeds standard phytase dose rates are used to replace up to 4.4 kg MCP or 6.4 kg DCP. As shown in numerous trials, increasing phytase above these standard levels, which is already authorized under EU law, can allow higher amounts of inorganic phosphates to be substituted.
Overcome shortages
The overall use of microbial phytases in monogastric feed, combined with an increase in dose rates, are an attractive option to supply more digestible phosphorous to livestock and to overcome the shortage in mineral phosphates without imposing an additional risk to the environment and the food chain. The significant reduction in phosphorus and trace element excretion by the animals would also be relevant.
Increased demand
The current scarcity of feed phosphates seems to find its roots in several factors.One factor is the new demand for biofuel crops, which has led to a sharp increase in the acreage of cereal crops being planted, and consequently in the amount of fertiliser being used. Secondly, the increased standard of living in countries such asIndia and China comes with all kinds of side-effects. For instance, more people can afford to use commercial washing powders, and since phosphates are used in washing powder, this represents an additional requirement for a product that is already in short supply. Also the rock phosphate reserves in Morocco and Tunisia are running low; some scientists are warning that this could happen in less than a hundred years.
Microbial phytases have been used for almost 20 years in animal nutrition to release plant-bound phytate phosphorous. Phytases become more important as phosphates become scarcer.
Phytases in diets for monogastric animals can contribute significantly to overcome the current shortage in feed phosphates, according to The European Feed Additives and Premixtures Association (FEFANA). At present in most of feeds standard phytase dose rates are used to replace up to 4.4 kg MCP or 6.4 kg DCP. As shown in numerous trials, increasing phytase above these standard levels, which is already authorized under EU law, can allow higher amounts of inorganic phosphates to be substituted.
Overcome shortages
The overall use of microbial phytases in monogastric feed, combined with an increase in dose rates, are an attractive option to supply more digestible phosphorous to livestock and to overcome the shortage in mineral phosphates without imposing an additional risk to the environment and the food chain. The significant reduction in phosphorus and trace element excretion by the animals would also be relevant.
Increased demand
The current scarcity of feed phosphates seems to find its roots in several factors.One factor is the new demand for biofuel crops, which has led to a sharp increase in the acreage of cereal crops being planted, and consequently in the amount of fertiliser being used. Secondly, the increased standard of living in countries such asIndia and China comes with all kinds of side-effects. For instance, more people can afford to use commercial washing powders, and since phosphates are used in washing powder, this represents an additional requirement for a product that is already in short supply. Also the rock phosphate reserves in Morocco and Tunisia are running low; some scientists are warning that this could happen in less than a hundred years.
Phytase helps win the fight for dietary phosphorus
Phytase helps win the fight for dietary phosphorus
Adding more phytase to feed presents pig and poultry producers with an opportunity to help offset some of the recent increase in feed phosphate prices, explains Danisco Animal Nutrition.
As the demand for phosphate fertilizers continues to rise to meet increases in global crop production to feed developing nations and produce ethanol, feed producers face the challenge of sourcing sufficient quantities of feed phosphates to meet animal requirements.
Feed phosphate prices have rocketed in recent months, reflecting the imbalance between global supply and demand. The UK's Agricultural Industries Confederation has recently reported that over the coming months supplies of feed phosphate will continue to be limited, which means that the price of feed phosphate will continue to rise.
New generation bacterial phytases have been shown to be more effective at releasing plant-bound phytate phosphorus than traditional fungal phytases. At a standard inclusion rate of 500 FTUs/kg feed, Danisco’s bacterial phytase (Phyzyme XP) can replace an additional 1.3 kg dicalcium phosphate (DCP) in pig and broiler feed formulations, compared to traditional fungal phytases.
“With the current phenomenal rise in the price of feed phosphates, producers should consider increasing the inclusion of phytase in their feed”, explains Dr Peter Plumstead, Danisco’s Technical Services Manager.
“We have a wealth of data to show that doubling the dose of phytase in pig and poultry feed allows at least an additional 1.9 kg dicalcium phosphate to be removed from the feed, without negatively affecting animal performance,” Peter continues.
500 FTUs /kg feed tends to be the standard phytase inclusion rate in broiler and pig feeds and 300 FTUs/kg feed for layer feeds. With current DCP prices at around €550/tonne, the economic optimum phytase inclusion rate is currently around 1000 FTUs/kg feed for broiler and young pig feeds and 600 FTUs/kg feed for layer diets.
“1000 FTUs/kg feed will currently reduce broiler feed costs by around €4.60/tonne. This allows a further 17% reduction in dicalcium phosphate, resulting in an additional feed cost saving of €0.60/tonne compared to the standard inclusion rate of 500 FTUs/kg feed. Increasing the phytase dose to 600 FTUs/kg feed will allow layer producers to further reduce their feed formulations costs by around €0.53/tonne, reducing dicalcium phosphate inclusion by around 30%” Peter concludes.
Danisco Animal Nutrition (www.danisco.com/animalnutrition), a business unit of leading global food ingredient specialist Danisco A/S (Denmark), pioneered the development and use of enzymes and betaine in animal nutrition. Its products are now widely used by poultry and pig producers throughout the world. The company’s mission is to deliver innovative, sustainable solutions that increase efficiency and safety of the food production chain in an environmentally sensitive way.
Adding more phytase to feed presents pig and poultry producers with an opportunity to help offset some of the recent increase in feed phosphate prices, explains Danisco Animal Nutrition.
As the demand for phosphate fertilizers continues to rise to meet increases in global crop production to feed developing nations and produce ethanol, feed producers face the challenge of sourcing sufficient quantities of feed phosphates to meet animal requirements.
Feed phosphate prices have rocketed in recent months, reflecting the imbalance between global supply and demand. The UK's Agricultural Industries Confederation has recently reported that over the coming months supplies of feed phosphate will continue to be limited, which means that the price of feed phosphate will continue to rise.
New generation bacterial phytases have been shown to be more effective at releasing plant-bound phytate phosphorus than traditional fungal phytases. At a standard inclusion rate of 500 FTUs/kg feed, Danisco’s bacterial phytase (Phyzyme XP) can replace an additional 1.3 kg dicalcium phosphate (DCP) in pig and broiler feed formulations, compared to traditional fungal phytases.
“With the current phenomenal rise in the price of feed phosphates, producers should consider increasing the inclusion of phytase in their feed”, explains Dr Peter Plumstead, Danisco’s Technical Services Manager.
“We have a wealth of data to show that doubling the dose of phytase in pig and poultry feed allows at least an additional 1.9 kg dicalcium phosphate to be removed from the feed, without negatively affecting animal performance,” Peter continues.
500 FTUs /kg feed tends to be the standard phytase inclusion rate in broiler and pig feeds and 300 FTUs/kg feed for layer feeds. With current DCP prices at around €550/tonne, the economic optimum phytase inclusion rate is currently around 1000 FTUs/kg feed for broiler and young pig feeds and 600 FTUs/kg feed for layer diets.
“1000 FTUs/kg feed will currently reduce broiler feed costs by around €4.60/tonne. This allows a further 17% reduction in dicalcium phosphate, resulting in an additional feed cost saving of €0.60/tonne compared to the standard inclusion rate of 500 FTUs/kg feed. Increasing the phytase dose to 600 FTUs/kg feed will allow layer producers to further reduce their feed formulations costs by around €0.53/tonne, reducing dicalcium phosphate inclusion by around 30%” Peter concludes.
Danisco Animal Nutrition (www.danisco.com/animalnutrition), a business unit of leading global food ingredient specialist Danisco A/S (Denmark), pioneered the development and use of enzymes and betaine in animal nutrition. Its products are now widely used by poultry and pig producers throughout the world. The company’s mission is to deliver innovative, sustainable solutions that increase efficiency and safety of the food production chain in an environmentally sensitive way.
CORN EFFECT
Corn prices on Wednesday surged above $7 a bushel for the first time, pushed higher by Midwestern rains that have flooded fields and left farmers with the prospect of a significantly smaller crop.
Corn's jump—its fifth consecutive record in as many days—means more headaches for consumers, who can expect higher beef, pork and chicken prices as livestock owners are forced to cope with higher costs for corn-based animal feed.
"If we don't get better weather, corn prices could explode higher," said Vic Lespinasse of GrainAnalyst.com. "Some areas need to be replanted but the problem is that it's too late to replant because the corn will be pollinating during the hottest period of the year."
Corn futures for July delivery rose 30 cents, or 4.5 percent, to $7.0325 a bushel at the Chicago Board of Trade, the maximum daily price change allowed by the exchange. Most-active futures, which gained 8.6 percent last week, have jumped 78 percent in the past year on record demand for feed and biofuels.
About 60 percent of the corn crop in the U.S., the world's largest grower and exporter, was in good or excellent condition as of Sunday, down from 63 percent the previous week, the USDA said in a Monday report. A year earlier, 77 percent got the highest rating. Iowa, Illinois, Nebraska, Minnesota and Indiana, the five top-producing states, reported declines.
U.S. corn production is expected to reach 11.7 billion bushels this year, a 10 percent drop from last year's crop, the USDA said in a report Tuesday. The government cut its yield forecast for corn by 3.2 percent, to 148.9 bushels an acre, from 153.9 predicted last month and 151.1 for last year's crop. The reduction reflects "persistent heavy rainfall across the Corn Belt," the USDA said in the report.
"The cut in yields this early in the growing season was a shock," said Roy Huckabay, an executive vice president at the Linn Group in Chicago. "We have to start rationing supplies."
Flooding has also pushed soybean prices to near-record levels. Soybeans for July delivery rose 70 cents, to settle at $15.165 a bushel on the CBOT, not far from the all-time high of $15.96 a bushel.
Corn's jump—its fifth consecutive record in as many days—means more headaches for consumers, who can expect higher beef, pork and chicken prices as livestock owners are forced to cope with higher costs for corn-based animal feed.
"If we don't get better weather, corn prices could explode higher," said Vic Lespinasse of GrainAnalyst.com. "Some areas need to be replanted but the problem is that it's too late to replant because the corn will be pollinating during the hottest period of the year."
Corn futures for July delivery rose 30 cents, or 4.5 percent, to $7.0325 a bushel at the Chicago Board of Trade, the maximum daily price change allowed by the exchange. Most-active futures, which gained 8.6 percent last week, have jumped 78 percent in the past year on record demand for feed and biofuels.
About 60 percent of the corn crop in the U.S., the world's largest grower and exporter, was in good or excellent condition as of Sunday, down from 63 percent the previous week, the USDA said in a Monday report. A year earlier, 77 percent got the highest rating. Iowa, Illinois, Nebraska, Minnesota and Indiana, the five top-producing states, reported declines.
U.S. corn production is expected to reach 11.7 billion bushels this year, a 10 percent drop from last year's crop, the USDA said in a report Tuesday. The government cut its yield forecast for corn by 3.2 percent, to 148.9 bushels an acre, from 153.9 predicted last month and 151.1 for last year's crop. The reduction reflects "persistent heavy rainfall across the Corn Belt," the USDA said in the report.
"The cut in yields this early in the growing season was a shock," said Roy Huckabay, an executive vice president at the Linn Group in Chicago. "We have to start rationing supplies."
Flooding has also pushed soybean prices to near-record levels. Soybeans for July delivery rose 70 cents, to settle at $15.165 a bushel on the CBOT, not far from the all-time high of $15.96 a bushel.
CORN RALLY
June 11 - U.S. corn futures hit an all-time high on Wednesday after the U.S. Agriculture Department lowered its yield forecast for 2008 due to wet weather hampering development of the crop.
The rally pulled up other commodities such as rice, soybeans and wheat and led to a jump on European grain markets.
Chicago corn futures for delivery in July 2009 rose as high as $7.35 a bushel in Asian trade on Wednesday, a new record. It was the fifth trading day in a row that corn has hit a record high.
Corn has hit successive all-time highs this week on fears that production in the United States, the world's top supplier of the grain, may not meet growing demand due to wet weather and a slow pace of planting.
The latest rally was sparked after the USDA on Tuesday cut its forecast for the average U.S. 2008 corn yield to 148.9 bushels per acre, down sharply from its May figure of 153.9.
As a result, the USDA lowered its corn production estimate to 11.7 billion bushels, down from 12.1 billion in May and down 10 percent from last year's crop.
"It's now become clear that this year's corn production will be insufficient," said Nobuyuki Chino, president of Unipac Grain Ltd in Tokyo.
Chino said it was shocking to see the yield figure fall below 150 this early in the season, and that an improvement in corn production was unlikely from this point.
"(Such a poor figure this early) raises strong worries that the situation is going to get worse," he said.
Sean Corrigan, chief investment strategist at Diapason Commodities, said U.S. corn futures could move towards $8 a bushel and that the market did not seem ripe for a downward correction quite yet.
"Just looking at the technical pattern, it ($8) is well within the bounds of credibility if this move has legs," he said. "I think it's premature yet to say the market is over-cooked."
By 1306 GMT, the Chicago July 2008 corn futures contract was trading at $6.83-1/2 per bushel, up from the previous day's close of $6.73-1/4.
BOOSTS OTHER GRAINS
European grain markets followed the rally on U.S. futures and anticipated a new jump at the open later in the day.
"If you look at the corn price, wheat can only rise. We can't have wheat cheaper than corn," a European trader said.
By 1227 GMT, the benchmark November wheat contract was up 6.75 euros or 3.5 percent at a session peak of 199.00 euros a tonne.
The CBOT July wheat futures contract was trading at $8.17 per bushel, up from the previous day's close of $8.09.
The CBOT July soybean futures contract gained 1.1 percent at $14.63 per bushel, after closing the previous day at $14.46-1/2.
It was not immediately clear if washed-out corn fields would really translate into more soybean acreage, as farmers may want to cash in on record prices above $6 a bushel, Chino said.
Protests by farmers in Argentina -- the world's third-largest exporter of soybeans after the United States and Brazil -- over a soy export tax are also seen as a possible threat to global supplies.
The July rough rice contract was also 1.4 percent higher at $19.7 per hundredweight after falling the previous day in reaction to a surprise increase in the domestic old-crop ending stocks estimate
The rally pulled up other commodities such as rice, soybeans and wheat and led to a jump on European grain markets.
Chicago corn futures for delivery in July 2009 rose as high as $7.35 a bushel in Asian trade on Wednesday, a new record. It was the fifth trading day in a row that corn has hit a record high.
Corn has hit successive all-time highs this week on fears that production in the United States, the world's top supplier of the grain, may not meet growing demand due to wet weather and a slow pace of planting.
The latest rally was sparked after the USDA on Tuesday cut its forecast for the average U.S. 2008 corn yield to 148.9 bushels per acre, down sharply from its May figure of 153.9.
As a result, the USDA lowered its corn production estimate to 11.7 billion bushels, down from 12.1 billion in May and down 10 percent from last year's crop.
"It's now become clear that this year's corn production will be insufficient," said Nobuyuki Chino, president of Unipac Grain Ltd in Tokyo.
Chino said it was shocking to see the yield figure fall below 150 this early in the season, and that an improvement in corn production was unlikely from this point.
"(Such a poor figure this early) raises strong worries that the situation is going to get worse," he said.
Sean Corrigan, chief investment strategist at Diapason Commodities, said U.S. corn futures could move towards $8 a bushel and that the market did not seem ripe for a downward correction quite yet.
"Just looking at the technical pattern, it ($8) is well within the bounds of credibility if this move has legs," he said. "I think it's premature yet to say the market is over-cooked."
By 1306 GMT, the Chicago July 2008 corn futures contract was trading at $6.83-1/2 per bushel, up from the previous day's close of $6.73-1/4.
BOOSTS OTHER GRAINS
European grain markets followed the rally on U.S. futures and anticipated a new jump at the open later in the day.
"If you look at the corn price, wheat can only rise. We can't have wheat cheaper than corn," a European trader said.
By 1227 GMT, the benchmark November wheat contract was up 6.75 euros or 3.5 percent at a session peak of 199.00 euros a tonne.
The CBOT July wheat futures contract was trading at $8.17 per bushel, up from the previous day's close of $8.09.
The CBOT July soybean futures contract gained 1.1 percent at $14.63 per bushel, after closing the previous day at $14.46-1/2.
It was not immediately clear if washed-out corn fields would really translate into more soybean acreage, as farmers may want to cash in on record prices above $6 a bushel, Chino said.
Protests by farmers in Argentina -- the world's third-largest exporter of soybeans after the United States and Brazil -- over a soy export tax are also seen as a possible threat to global supplies.
The July rough rice contract was also 1.4 percent higher at $19.7 per hundredweight after falling the previous day in reaction to a surprise increase in the domestic old-crop ending stocks estimate
Weekly Outlook: Assessing Corn and Soybean Market Fundamentals
US - Corn and soybean prices continue to be supported by a broad range of fundamental factors. These include strong domestic and export demand and a fair amount of concern about the potential size of the 2008 crops in the U.S.
The Census Bureau reported the domestic soybean crush in April 2008 at 149.2 million bushels, nearly 3 percent larger than the crush of April 2007. Importantly, the estimate of the March crush was revised higher so that the cumulative crush during the first eight months of the 2007-08 marketing year exceeds that of a year ago by 2.7 percent. Crush during the last four months of the year needs to exceed year ago levels by only 0.3 percent to reach the USDA projection of 1.84 billion bushels for the year. It appears likely that crush will exceed that projection.
Prospects for domestic feed demand of soybean meal and corn are bolstered by the sharp recovery in hog prices outlined in last week’s newsletter. Higher cash and futures prices may slow the rate of liquidation of the herd. In addition, as of May 1, the number of cattle on feedlots with capacity of at least 1,000 head was down only 1 percent from that of a year earlier. Placement of broiler eggs and chicks continues at a rapid pace, with broiler production over the next 10 months expected to be only 0.5 percent less than during the same time period last year. Feed demand for corn during the summer months, however, may be tempered by increased wheat feeding. The average bid for harvest delivered wheat in southern Illinois, for example, is currently only about $.20 per bushel above the current spot cash price of corn.
Domestic demand for corn to produce ethanol also remains strong as current cash crush margins are solidly in the black. Higher ethanol prices and strengthening prices of distiller grains have offset the higher prices of corn and natural gas. A continuation of relatively high crude oil and gasoline prices would be supportive of continued strong demand even with a lower blender tax credit and reduced mandates. The current wholesale price of unleaded gasoline along with a $.45 per gallon blender’s tax credit, for example, would support ethanol prices $.20 above current plant level prices. Higher fuel prices might also give a boost to soybean oil demand for biodiesel production. That use has declined sharply since the peak in August 2007, but the use of other fats and oils for biodiesel production has increased sharply.
Soybean export demand remains brisk. Cumulative shipments through May 22, 2008 (38 weeks into the marketing year) were only one percent less than the total of a year ago, while the USDA is projecting a 2.5 percent decline for the year. Unshipped sales as of May 15 totaled 136 million bushels, compared to only 81 million on the same date last year. It is also significant that Census Bureau export estimates through March exceeded the USDA estimates by 30 million bushels. Last year, Census Bureau estimates through March were 30 million less than USDA estimates. Through March, then, the Census Bureau showed soybean exports exceeding those of a year ago by 39 million bushels. Continued strong demand from China, export interruptions in Argentina, and prospects of only a modest increase in soybean acreage in South America keep export prospects strong.
The pace of corn export shipments has slowed since mid-April. Cumulative inspections through May 22 exceeded year ago levels by 17 percent, in line with the 17.6 percent increase for the year projected by USDA. Unshipped sales as of May 15 totaled 503 million bushels, compared to only 381 million bushels a year earlier. In addition, Census Bureau export estimates through March exceeded inspections by 49 million bushels, compared to a margin of 25 million a year ago. While sales remain brisk, the pace of exports needs to increase to reach the USDA projection for the year of 2.5 billion bushels.
On the supply side, the focus will continue to be on the rate of planting and development of the U.S. crops. More than half the corn crop in Iowa, Minnesota, and Missouri will be planted after May 10 and more than half the soybean crop in most corn belt states will be planted after May 20. Late planting, slow emergence, and slow growth all raise concerns about yield potential. In addition, the late maturity of the soft red winter wheat crop in Illinois, Indiana, Missouri, and Ohio raises questions about the timeliness of soybean planting following the wheat harvest. A late wheat harvest might reduce acreage and/or yield of double-cropped soybeans in those areas.
Some suggest that corn and soybean prices have not been following fundamentals, but have traded outside markets like crude oil. However, energy prices are more fundamental to crop markets than ever before. Others have argued that crop prices have been inflated by increased speculation in the futures market. There is no hard evidence to support that argument. It is sufficient that corn and soybean markets have plenty of supportive fundamentals on their own.
The Census Bureau reported the domestic soybean crush in April 2008 at 149.2 million bushels, nearly 3 percent larger than the crush of April 2007. Importantly, the estimate of the March crush was revised higher so that the cumulative crush during the first eight months of the 2007-08 marketing year exceeds that of a year ago by 2.7 percent. Crush during the last four months of the year needs to exceed year ago levels by only 0.3 percent to reach the USDA projection of 1.84 billion bushels for the year. It appears likely that crush will exceed that projection.
Prospects for domestic feed demand of soybean meal and corn are bolstered by the sharp recovery in hog prices outlined in last week’s newsletter. Higher cash and futures prices may slow the rate of liquidation of the herd. In addition, as of May 1, the number of cattle on feedlots with capacity of at least 1,000 head was down only 1 percent from that of a year earlier. Placement of broiler eggs and chicks continues at a rapid pace, with broiler production over the next 10 months expected to be only 0.5 percent less than during the same time period last year. Feed demand for corn during the summer months, however, may be tempered by increased wheat feeding. The average bid for harvest delivered wheat in southern Illinois, for example, is currently only about $.20 per bushel above the current spot cash price of corn.
Domestic demand for corn to produce ethanol also remains strong as current cash crush margins are solidly in the black. Higher ethanol prices and strengthening prices of distiller grains have offset the higher prices of corn and natural gas. A continuation of relatively high crude oil and gasoline prices would be supportive of continued strong demand even with a lower blender tax credit and reduced mandates. The current wholesale price of unleaded gasoline along with a $.45 per gallon blender’s tax credit, for example, would support ethanol prices $.20 above current plant level prices. Higher fuel prices might also give a boost to soybean oil demand for biodiesel production. That use has declined sharply since the peak in August 2007, but the use of other fats and oils for biodiesel production has increased sharply.
Soybean export demand remains brisk. Cumulative shipments through May 22, 2008 (38 weeks into the marketing year) were only one percent less than the total of a year ago, while the USDA is projecting a 2.5 percent decline for the year. Unshipped sales as of May 15 totaled 136 million bushels, compared to only 81 million on the same date last year. It is also significant that Census Bureau export estimates through March exceeded the USDA estimates by 30 million bushels. Last year, Census Bureau estimates through March were 30 million less than USDA estimates. Through March, then, the Census Bureau showed soybean exports exceeding those of a year ago by 39 million bushels. Continued strong demand from China, export interruptions in Argentina, and prospects of only a modest increase in soybean acreage in South America keep export prospects strong.
The pace of corn export shipments has slowed since mid-April. Cumulative inspections through May 22 exceeded year ago levels by 17 percent, in line with the 17.6 percent increase for the year projected by USDA. Unshipped sales as of May 15 totaled 503 million bushels, compared to only 381 million bushels a year earlier. In addition, Census Bureau export estimates through March exceeded inspections by 49 million bushels, compared to a margin of 25 million a year ago. While sales remain brisk, the pace of exports needs to increase to reach the USDA projection for the year of 2.5 billion bushels.
On the supply side, the focus will continue to be on the rate of planting and development of the U.S. crops. More than half the corn crop in Iowa, Minnesota, and Missouri will be planted after May 10 and more than half the soybean crop in most corn belt states will be planted after May 20. Late planting, slow emergence, and slow growth all raise concerns about yield potential. In addition, the late maturity of the soft red winter wheat crop in Illinois, Indiana, Missouri, and Ohio raises questions about the timeliness of soybean planting following the wheat harvest. A late wheat harvest might reduce acreage and/or yield of double-cropped soybeans in those areas.
Some suggest that corn and soybean prices have not been following fundamentals, but have traded outside markets like crude oil. However, energy prices are more fundamental to crop markets than ever before. Others have argued that crop prices have been inflated by increased speculation in the futures market. There is no hard evidence to support that argument. It is sufficient that corn and soybean markets have plenty of supportive fundamentals on their own.
Corn and Soybean Market Fundamentals Assessed
Corn and Soybean Market Fundamentals Assessed
US - Corn and soybean prices continue to be supported by a broad range of fundamental factors. These include strong domestic and export demand and a fair amount of concern about the potential size of the 2008 crops in the U.S.
The Census Bureau reported the domestic soybean crush in April 2008 at 149.2 million bushels, nearly 3 percent larger than the crush of April 2007. Importantly, the estimate of the March crush was revised higher so that the cumulative crush during the first eight months of the 2007-08 marketing year exceeds that of a year ago by 2.7 percent. Crush during the last four months of the year needs to exceed year ago levels by only 0.3 percent to reach the USDA projection of 1.84 billion bushels for the year. It appears likely that crush will exceed that projection.
Prospects for domestic feed demand of soybean meal and corn are bolstered by the sharp recovery in hog prices outlined in last week’s newsletter. Higher cash and futures prices may slow the rate of liquidation of the herd. In addition, as of May 1, the number of cattle on feedlots with capacity of at least 1,000 head was down only 1 percent from that of a year earlier. Placement of broiler eggs and chicks continues at a rapid pace, with broiler production over the next 10 months expected to be only 0.5 percent less than during the same time period last year. Feed demand for corn during the summer months, however, may be tempered by increased wheat feeding. The average bid for harvest delivered wheat in southern Illinois, for example, is currently only about $.20 per bushel above the current spot cash price of corn.
Domestic demand for corn to produce ethanol also remains strong as current cash crush margins are solidly in the black. Higher ethanol prices and strengthening prices of distiller grains have offset the higher prices of corn and natural gas. A continuation of relatively high crude oil and gasoline prices would be supportive of continued strong demand even with a lower blender tax credit and reduced mandates. The current wholesale price of unleaded gasoline along with a $.45 per gallon blender’s tax credit, for example, would support ethanol prices $.20 above current plant level prices. Higher fuel prices might also give a boost to soybean oil demand for biodiesel production. That use has declined sharply since the peak in August 2007, but the use of other fats and oils for biodiesel production has increased sharply.
Soybean export demand remains brisk. Cumulative shipments through May 22, 2008 (38 weeks into the marketing year) were only one percent less than the total of a year ago, while the USDA is projecting a 2.5 percent decline for the year. Unshipped sales as of May 15 totaled 136 million bushels, compared to only 81 million on the same date last year. It is also significant that Census Bureau export estimates through March exceeded the USDA estimates by 30 million bushels. Last year, Census Bureau estimates through March were 30 million less than USDA estimates. Through March, then, the Census Bureau showed soybean exports exceeding those of a year ago by 39 million bushels. Continued strong demand from China, export interruptions in Argentina, and prospects of only a modest increase in soybean acreage in South America keep export prospects strong.
The pace of corn export shipments has slowed since mid-April. Cumulative inspections through May 22 exceeded year ago levels by 17 percent, in line with the 17.6 percent increase for the year projected by USDA. Unshipped sales as of May 15 totaled 503 million bushels, compared to only 381 million bushels a year earlier. In addition, Census Bureau export estimates through March exceeded inspections by 49 million bushels, compared to a margin of 25 million a year ago. While sales remain brisk, the pace of exports needs to increase to reach the USDA projection for the year of 2.5 billion bushels.
On the supply side, the focus will continue to be on the rate of planting and development of the U.S. crops. More than half the corn crop in Iowa, Minnesota, and Missouri will be planted after May 10 and more than half the soybean crop in most corn belt states will be planted after May 20. Late planting, slow emergence, and slow growth all raise concerns about yield potential. In addition, the late maturity of the soft red winter wheat crop in Illinois, Indiana, Missouri, and Ohio raises questions about the timeliness of soybean planting following the wheat harvest. A late wheat harvest might reduce acreage and/or yield of double-cropped soybeans in those areas.
Some suggest that corn and soybean prices have not been following fundamentals, but have traded outside markets like crude oil. However, energy prices are more fundamental to crop markets than ever before. Others have argued that crop prices have been inflated by increased speculation in the futures market. There is no hard evidence to support that argument. It is sufficient that corn and soybean markets have plenty of supportive fundamentals on their own.
US - Corn and soybean prices continue to be supported by a broad range of fundamental factors. These include strong domestic and export demand and a fair amount of concern about the potential size of the 2008 crops in the U.S.
The Census Bureau reported the domestic soybean crush in April 2008 at 149.2 million bushels, nearly 3 percent larger than the crush of April 2007. Importantly, the estimate of the March crush was revised higher so that the cumulative crush during the first eight months of the 2007-08 marketing year exceeds that of a year ago by 2.7 percent. Crush during the last four months of the year needs to exceed year ago levels by only 0.3 percent to reach the USDA projection of 1.84 billion bushels for the year. It appears likely that crush will exceed that projection.
Prospects for domestic feed demand of soybean meal and corn are bolstered by the sharp recovery in hog prices outlined in last week’s newsletter. Higher cash and futures prices may slow the rate of liquidation of the herd. In addition, as of May 1, the number of cattle on feedlots with capacity of at least 1,000 head was down only 1 percent from that of a year earlier. Placement of broiler eggs and chicks continues at a rapid pace, with broiler production over the next 10 months expected to be only 0.5 percent less than during the same time period last year. Feed demand for corn during the summer months, however, may be tempered by increased wheat feeding. The average bid for harvest delivered wheat in southern Illinois, for example, is currently only about $.20 per bushel above the current spot cash price of corn.
Domestic demand for corn to produce ethanol also remains strong as current cash crush margins are solidly in the black. Higher ethanol prices and strengthening prices of distiller grains have offset the higher prices of corn and natural gas. A continuation of relatively high crude oil and gasoline prices would be supportive of continued strong demand even with a lower blender tax credit and reduced mandates. The current wholesale price of unleaded gasoline along with a $.45 per gallon blender’s tax credit, for example, would support ethanol prices $.20 above current plant level prices. Higher fuel prices might also give a boost to soybean oil demand for biodiesel production. That use has declined sharply since the peak in August 2007, but the use of other fats and oils for biodiesel production has increased sharply.
Soybean export demand remains brisk. Cumulative shipments through May 22, 2008 (38 weeks into the marketing year) were only one percent less than the total of a year ago, while the USDA is projecting a 2.5 percent decline for the year. Unshipped sales as of May 15 totaled 136 million bushels, compared to only 81 million on the same date last year. It is also significant that Census Bureau export estimates through March exceeded the USDA estimates by 30 million bushels. Last year, Census Bureau estimates through March were 30 million less than USDA estimates. Through March, then, the Census Bureau showed soybean exports exceeding those of a year ago by 39 million bushels. Continued strong demand from China, export interruptions in Argentina, and prospects of only a modest increase in soybean acreage in South America keep export prospects strong.
The pace of corn export shipments has slowed since mid-April. Cumulative inspections through May 22 exceeded year ago levels by 17 percent, in line with the 17.6 percent increase for the year projected by USDA. Unshipped sales as of May 15 totaled 503 million bushels, compared to only 381 million bushels a year earlier. In addition, Census Bureau export estimates through March exceeded inspections by 49 million bushels, compared to a margin of 25 million a year ago. While sales remain brisk, the pace of exports needs to increase to reach the USDA projection for the year of 2.5 billion bushels.
On the supply side, the focus will continue to be on the rate of planting and development of the U.S. crops. More than half the corn crop in Iowa, Minnesota, and Missouri will be planted after May 10 and more than half the soybean crop in most corn belt states will be planted after May 20. Late planting, slow emergence, and slow growth all raise concerns about yield potential. In addition, the late maturity of the soft red winter wheat crop in Illinois, Indiana, Missouri, and Ohio raises questions about the timeliness of soybean planting following the wheat harvest. A late wheat harvest might reduce acreage and/or yield of double-cropped soybeans in those areas.
Some suggest that corn and soybean prices have not been following fundamentals, but have traded outside markets like crude oil. However, energy prices are more fundamental to crop markets than ever before. Others have argued that crop prices have been inflated by increased speculation in the futures market. There is no hard evidence to support that argument. It is sufficient that corn and soybean markets have plenty of supportive fundamentals on their own.
Potential for soybean meal in aquafeed
Aquaculture represents great potential for soybean meal, because aquaculture is the fastest-growing animal-food-producing sector, consuming soybean meal from over 250 million bushels of soybeans.
The United Soybean Board (USB) and the soybean checkoff continue developing new uses and new demand for soybeans in all lands of the world, and even the ocean holds great potential for soy.
Soybean meal has increasingly become a key ingredient in fish feeds as the aquaculture industry strives to meet global demand for its products thanks in part to checkoff research and marketing efforts.
"Fish meal is getting scarce and more costly, creating a market opportunity for more soybean meal to be used as a protein source in fish and shrimp diets," says Bill Coppess, USB director and a soybean farmer from Ansonia, OH. "Soy diets can also decrease the mercury levels in seafood, helping to alleviate some health concerns."
In the United States, each person eats about 16.5 pounds (7.5 kg) of fish and shellfish each year, including about 4.4 pounds (2 kg) of shrimp. The U.S. consumes about 1.4 billion pounds (634,000 tonnes) of shrimp annually.
"Crustaceans represent about 4 percent of aquaculture products worldwide, but represent about 20 percent of the value," says Karen Fear, USB director and a soybean farmer from Montpelier, IN.
"That's why the soybean checkoff is working with shrimp farmers around the world to find ways for more soy to be used in shrimp diets."
The soybean checkoff also works to incorporate soy into all species of farmed fish.
Ocean capture fisheries, which have long provided the majority of edible fish products for the world, have reached maximum sustainable yields.
This means that any expansion will have to come from aquaculture, and using soy as an aquafeed will be a big part of that expansion.
The United Soybean Board (USB) and the soybean checkoff continue developing new uses and new demand for soybeans in all lands of the world, and even the ocean holds great potential for soy.
Soybean meal has increasingly become a key ingredient in fish feeds as the aquaculture industry strives to meet global demand for its products thanks in part to checkoff research and marketing efforts.
"Fish meal is getting scarce and more costly, creating a market opportunity for more soybean meal to be used as a protein source in fish and shrimp diets," says Bill Coppess, USB director and a soybean farmer from Ansonia, OH. "Soy diets can also decrease the mercury levels in seafood, helping to alleviate some health concerns."
In the United States, each person eats about 16.5 pounds (7.5 kg) of fish and shellfish each year, including about 4.4 pounds (2 kg) of shrimp. The U.S. consumes about 1.4 billion pounds (634,000 tonnes) of shrimp annually.
"Crustaceans represent about 4 percent of aquaculture products worldwide, but represent about 20 percent of the value," says Karen Fear, USB director and a soybean farmer from Montpelier, IN.
"That's why the soybean checkoff is working with shrimp farmers around the world to find ways for more soy to be used in shrimp diets."
The soybean checkoff also works to incorporate soy into all species of farmed fish.
Ocean capture fisheries, which have long provided the majority of edible fish products for the world, have reached maximum sustainable yields.
This means that any expansion will have to come from aquaculture, and using soy as an aquafeed will be a big part of that expansion.
Food for Thought: Does Meat Cause Hunger?
GLOBE - Not bio-fuel, but animals raised for meat are the main reason for the growing shortage of food in the world claims Pune Maharahtra. One-third of the annual global food production is used for feeding animals specially bred and fattened to be killed for their flesh. If the crops fed to them were to be consumed by humans, there would be no shortage.
Pune Maharahtra is a writer for Beauty Without Cruelty (BWC), she says the world is on the verge of a global food crisis. Economists are questioning how fair it is to use land to grow corn, etc., for the production of bio-fuel when people increasingly don't have enough to eat. Fuel is, but a lesser reason for this deep-rooted problem.
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"If the crops fed to them were to be consumed by humans, there would be no shortage of food."
Pune Maharahtra.
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"The main reason for the growing shortage of food needs to be tackled: animals specially bred and fattened to be killed for meat. If the crops fed to them were to be consumed by humans, there would be no shortage of food. As much as one-third of the approximately 2000 million tons of annual global food production is used for feeding these animals for their flesh." Claims Pune Maharahtra.
The feed-to-meat ratio varies depending upon species (poultry, pigs, cattle, sheep & goats) and whether produced in a developed or developing country, but on an average 4 kilograms of feed yields only 1 kilogram of meat.
Moreover, the FAO has stated that the world's livestock production is 18% more responsible for global warming than all transport emissions. It causes wide-scale land degradation, uses large quantities of the earth's increasingly scarce water resources, pollutes land, water and air, and is responsible for excessive use of energy, all of which are downright harmful to our environment.
Pune Maharahtra says the environmentalists are not the only ones who are showing deep concern. "Emerging markets' central banks and governments are no longer ignoring rising food prices coupled with low stocks of rice and wheat (inflation and hoarding) and protests of shortages resulting in social tensions. They know that converting land produce to meat is an expensive business, the direct effect of which is a steep rise in grain prices which hits the poor most
Pune Maharahtra is a writer for Beauty Without Cruelty (BWC), she says the world is on the verge of a global food crisis. Economists are questioning how fair it is to use land to grow corn, etc., for the production of bio-fuel when people increasingly don't have enough to eat. Fuel is, but a lesser reason for this deep-rooted problem.
--------------------------------------------------------------------------------
*
"If the crops fed to them were to be consumed by humans, there would be no shortage of food."
Pune Maharahtra.
--------------------------------------------------------------------------------
"The main reason for the growing shortage of food needs to be tackled: animals specially bred and fattened to be killed for meat. If the crops fed to them were to be consumed by humans, there would be no shortage of food. As much as one-third of the approximately 2000 million tons of annual global food production is used for feeding these animals for their flesh." Claims Pune Maharahtra.
The feed-to-meat ratio varies depending upon species (poultry, pigs, cattle, sheep & goats) and whether produced in a developed or developing country, but on an average 4 kilograms of feed yields only 1 kilogram of meat.
Moreover, the FAO has stated that the world's livestock production is 18% more responsible for global warming than all transport emissions. It causes wide-scale land degradation, uses large quantities of the earth's increasingly scarce water resources, pollutes land, water and air, and is responsible for excessive use of energy, all of which are downright harmful to our environment.
Pune Maharahtra says the environmentalists are not the only ones who are showing deep concern. "Emerging markets' central banks and governments are no longer ignoring rising food prices coupled with low stocks of rice and wheat (inflation and hoarding) and protests of shortages resulting in social tensions. They know that converting land produce to meat is an expensive business, the direct effect of which is a steep rise in grain prices which hits the poor most
CHOLINE CHLORIDE DEMAND
// 15 apr 2008
Choline chloride demand will reach 391.8 thousand tons by 2012, according to new report by Global Industry Analysts, Inc. Growth in poultry feed additives is one of the major drivers of this increasing demand. Swine feed additives and fish feed additives also offer significant growth opportunities.
Choline chloride, a derivative of methylamine, is predominantly used in animal feed additives as a principal dietary supplement in poultry, swine feed and fish farming. The fastest growing markets are Central and South Americas and the far Eastern countries, particularly China. As living standards in these countries are improving steadily, poultry consumption is being looked upon more favourably.
6% growth per year
Consumers are increasingly shifting from red meat to white meat. Choline chloride market is expected to grow at over 6% annually, as stated in a recent report published by Global Industry Analysts, Inc. Consumption of choline chloride in poultry feed additives in United States is estimated at 52.7 thousand tons for 2008. Asia-Pacific and Latin American regions offer the highest growth opportunity for choline chloride market.
Major players in the marketplace include Balchem Corporation, BCP Ingredients and DSM Nutritional Products
Choline chloride demand will reach 391.8 thousand tons by 2012, according to new report by Global Industry Analysts, Inc. Growth in poultry feed additives is one of the major drivers of this increasing demand. Swine feed additives and fish feed additives also offer significant growth opportunities.
Choline chloride, a derivative of methylamine, is predominantly used in animal feed additives as a principal dietary supplement in poultry, swine feed and fish farming. The fastest growing markets are Central and South Americas and the far Eastern countries, particularly China. As living standards in these countries are improving steadily, poultry consumption is being looked upon more favourably.
6% growth per year
Consumers are increasingly shifting from red meat to white meat. Choline chloride market is expected to grow at over 6% annually, as stated in a recent report published by Global Industry Analysts, Inc. Consumption of choline chloride in poultry feed additives in United States is estimated at 52.7 thousand tons for 2008. Asia-Pacific and Latin American regions offer the highest growth opportunity for choline chloride market.
Major players in the marketplace include Balchem Corporation, BCP Ingredients and DSM Nutritional Products
CARGILL REPORTS RESULTS
Cargill reports third-quarter results
// 15 apr 2008
Cargill today reported net earnings of $1.03 billion in the 2008 third quarter ended Feb. 29, up 86% from $553 million in the same period a year ago. Earnings in the first nine months totalled $2.9 billion, a 69% increase from $1.71 billion a year ago.
Greg Page, Cargill chairman and chief executive officer said Cargill's global assets, market insight, diversification and risk management skills have served the company well. "Our business model gives us the wherewithal to remain customer focused in a very challenging operating environment."
Four of Cargill's five business segments increased earnings from the third quarter a year ago. The largest earnings contribution came from the origination and processing segment, which sources, processes and distributes agricultural commodities and provides supply chain and risk management services to customers globally. Results in agriculture services rose mostly on the improved performance of Cargill's global animal nutrition operations.
// 15 apr 2008
Cargill today reported net earnings of $1.03 billion in the 2008 third quarter ended Feb. 29, up 86% from $553 million in the same period a year ago. Earnings in the first nine months totalled $2.9 billion, a 69% increase from $1.71 billion a year ago.
Greg Page, Cargill chairman and chief executive officer said Cargill's global assets, market insight, diversification and risk management skills have served the company well. "Our business model gives us the wherewithal to remain customer focused in a very challenging operating environment."
Four of Cargill's five business segments increased earnings from the third quarter a year ago. The largest earnings contribution came from the origination and processing segment, which sources, processes and distributes agricultural commodities and provides supply chain and risk management services to customers globally. Results in agriculture services rose mostly on the improved performance of Cargill's global animal nutrition operations.
CORN VERSUS SOYBEAN RETURNS IN 2008
CORN VERSUS SOYBEAN RETURNS IN 2008
How many acres of corn and soybeans will be planted this year is of great interest and could impact relative corn and soybean prices. Most projections indicate fewer corn acres and more soybean acres will be planted in 2008 as compared to 2007.
Relative profitability of corn and soybeans may impact acreage decisions. Given current cash bids for fall delivery, our analysis suggests that corn will be more profitable than soybeans in 2008 on many farms in Illinois. This analysis is conducted by calculating expected corn and soybean revenues for each Crop Reporting District in Illinois. Differences in corn and soybean revenue then are compared to differences in non-land production costs. Across all Districts, corn is projected to be more profitable than soybeans based on harvest bids as of March 20th .
Projected Corn and Soybean Revenue by Illinois Crop Reporting District
Table 1 shows projected corn revenue and soybean revenue for each Crop Reporting District in Illinois. Expected revenue for each crop equals expected yield times a new-crop bid price for fall delivery. Expected yields are based on historical yields from 1972 through 2007. Using this historical data, a trend-line is constructed for each Crop Reporting District. Expected 2008 yields are found by projecting the trend-line forward into 2008. For example, the Central District yield of 173 bushels is based on a trend-line indicating that yields increase an average of 1.9 bushels per year, resulting in a 2008 expected yield of 173 bushels per acre.
Prices are average overnight bids on March 20th for fall delivery of new crops as reported by the Illinois Department of Agriculture. These prices vary across the Districts. For corn, prices range from a low of $4.69 for the West Southwest District to a high of $4.90 per bushel for the Central District. For soybeans, prices range from $10.61 for the Southwest West District up to $11.06 for the Central District.
Expected revenues vary across the districts, primarily due to differences in expected yields. For corn, expected revenues range from a low of $631 for the Southwest District to a high of $848 per acre for the Central District. For soybeans, expected revenues range from a low of $389 per acre for the Southwest District to a high of $575 per acre for the Central District.
Corn minus soybean revenues are reported in the last column of Table 1. All corn minus soybean revenues exceed $230 per acre. The lowest difference is $230 per acre in the Southeast district. The largest difference is $277 in the West Southwest District.
Revenue Differences Compared to Cost Differences
If corn costs minus soybean costs are less than the above revenue differences, corn will be projected to be more profitable than soybeans. Table 2 shows corn and soybean budgets for Central Illinois farms with high-productivity farmland. Difference in corn and soybean costs for northern and southern Illinois are of similar magnitudes to those for central Illinois.
The first two columns show historic results for farms enrolled in Illinois Farm Business Farm Management (FBFM) averaged for the years 2001 through 2005. During this period, non-land costs averaged $257 per acre for corn and $171 for soybeans. Corn minus soybean costs equaled $86 per acre.
The middle columns show budgets for 2008 prepared in the fall of 2007 using commodity and fertilizer prices prevalent during the fall. In the fall, non-land production costs were projected at $364 for corn and $215 for soybeans, giving a $149 difference in corn and soybean costs. The $149 per acre difference in costs is higher than the $86 difference in costs between 2001 and 2005, but is less than the average differences in 2008 projected revenues across Crop Reporting Districts.
The 2008 budgets were revised to take into consideration fertilizer price increases. Revised budgets are shown in the last two columns of Table 2. The only difference in costs between the “fall” budgets and the “spring” budgets is a difference in fertilizer costs due to fertilizer price increases. All fertilizer prices were increased in the spring budgets. For example, a $580 per ton anhydrous ammonia price was used in fall budgets while a $700 per ton ammonia price was used in spring budgets. Budgets prepared in the spring have non-land costs of $389 per acre for corn and $227 per acre for soybeans, giving a difference in corn and soybean costs of $162 per acre.
Given the revised fertilizer prices, corn costs have increased relatively more than soybean costs. The difference in 2008 corn minus soybean costs is $149 per acre given fall prices and $162 given spring prices. However, increases in costs do not cause soybeans to be more profitable than corn. The smallest difference in corn and soybean revenue across Crop Reporting Districts is $230 per acre (see Table 1). Given the smallest revenue difference, corn is projected to be more profitable than soybeans by $69 per acre ($230 revenue difference - $162 cost difference).
The $700 anhydrous price used in the spring budgets may be below what some farmers had to pay for nitrogen. Even with higher anhydrous prices, corn will be projected to be more profitable than soybeans. A $100 per ton increase in anhydrous ammonia price will increase nitrogen costs by $8.90 per acre, given that 170 pounds of actual nitrogen are applied per acre. An $8.90 increase in costs will reduce but not eliminate the returns advantage of corn.
There are a number of factors that could change these calculations:
Relative corn and soybean price change could cause profitability to switch.
Relative yields could vary. In particular, any yield drag for corn-after-corn could narrow profits
Insect, disease, or fungus problems could require pesticide treatments which could raise the costs of one of the crops.
Summary
Magnitude of differences in projected revenue of corn and soybeans across Crop Reporting Districts are large, suggesting that many farms will find corn production more profitable than soybean production. While Illinois farmers may shift acres from corn to soybeans in 2008, the relative profitability of the crops do not appear to be a reason for this acreage shift.
Acknowledgments
Data used in this study comes from the local Farm Business Farm Management (FBFM) Associations across the State of Illinois. Without their cooperation, information as comprehensive and accurate as this would not be available for educational purposes. FBFM, which consists of 6,000 plus farmers and 60 professional field staff, is a not-for-profit organization available to all farm operators in Illinois. FBFM field staff provides on-farm counsel with computerized recordkeeping, farm financial management, business entity planning and income tax management. For more information, please contact the State FBFM Office located at the University of Illinois Department of Agricultural and Consumer Economics at 217-333-5511 or visit the FBFM website at www.fbfm.org
How many acres of corn and soybeans will be planted this year is of great interest and could impact relative corn and soybean prices. Most projections indicate fewer corn acres and more soybean acres will be planted in 2008 as compared to 2007.
Relative profitability of corn and soybeans may impact acreage decisions. Given current cash bids for fall delivery, our analysis suggests that corn will be more profitable than soybeans in 2008 on many farms in Illinois. This analysis is conducted by calculating expected corn and soybean revenues for each Crop Reporting District in Illinois. Differences in corn and soybean revenue then are compared to differences in non-land production costs. Across all Districts, corn is projected to be more profitable than soybeans based on harvest bids as of March 20th .
Projected Corn and Soybean Revenue by Illinois Crop Reporting District
Table 1 shows projected corn revenue and soybean revenue for each Crop Reporting District in Illinois. Expected revenue for each crop equals expected yield times a new-crop bid price for fall delivery. Expected yields are based on historical yields from 1972 through 2007. Using this historical data, a trend-line is constructed for each Crop Reporting District. Expected 2008 yields are found by projecting the trend-line forward into 2008. For example, the Central District yield of 173 bushels is based on a trend-line indicating that yields increase an average of 1.9 bushels per year, resulting in a 2008 expected yield of 173 bushels per acre.
Prices are average overnight bids on March 20th for fall delivery of new crops as reported by the Illinois Department of Agriculture. These prices vary across the Districts. For corn, prices range from a low of $4.69 for the West Southwest District to a high of $4.90 per bushel for the Central District. For soybeans, prices range from $10.61 for the Southwest West District up to $11.06 for the Central District.
Expected revenues vary across the districts, primarily due to differences in expected yields. For corn, expected revenues range from a low of $631 for the Southwest District to a high of $848 per acre for the Central District. For soybeans, expected revenues range from a low of $389 per acre for the Southwest District to a high of $575 per acre for the Central District.
Corn minus soybean revenues are reported in the last column of Table 1. All corn minus soybean revenues exceed $230 per acre. The lowest difference is $230 per acre in the Southeast district. The largest difference is $277 in the West Southwest District.
Revenue Differences Compared to Cost Differences
If corn costs minus soybean costs are less than the above revenue differences, corn will be projected to be more profitable than soybeans. Table 2 shows corn and soybean budgets for Central Illinois farms with high-productivity farmland. Difference in corn and soybean costs for northern and southern Illinois are of similar magnitudes to those for central Illinois.
The first two columns show historic results for farms enrolled in Illinois Farm Business Farm Management (FBFM) averaged for the years 2001 through 2005. During this period, non-land costs averaged $257 per acre for corn and $171 for soybeans. Corn minus soybean costs equaled $86 per acre.
The middle columns show budgets for 2008 prepared in the fall of 2007 using commodity and fertilizer prices prevalent during the fall. In the fall, non-land production costs were projected at $364 for corn and $215 for soybeans, giving a $149 difference in corn and soybean costs. The $149 per acre difference in costs is higher than the $86 difference in costs between 2001 and 2005, but is less than the average differences in 2008 projected revenues across Crop Reporting Districts.
The 2008 budgets were revised to take into consideration fertilizer price increases. Revised budgets are shown in the last two columns of Table 2. The only difference in costs between the “fall” budgets and the “spring” budgets is a difference in fertilizer costs due to fertilizer price increases. All fertilizer prices were increased in the spring budgets. For example, a $580 per ton anhydrous ammonia price was used in fall budgets while a $700 per ton ammonia price was used in spring budgets. Budgets prepared in the spring have non-land costs of $389 per acre for corn and $227 per acre for soybeans, giving a difference in corn and soybean costs of $162 per acre.
Given the revised fertilizer prices, corn costs have increased relatively more than soybean costs. The difference in 2008 corn minus soybean costs is $149 per acre given fall prices and $162 given spring prices. However, increases in costs do not cause soybeans to be more profitable than corn. The smallest difference in corn and soybean revenue across Crop Reporting Districts is $230 per acre (see Table 1). Given the smallest revenue difference, corn is projected to be more profitable than soybeans by $69 per acre ($230 revenue difference - $162 cost difference).
The $700 anhydrous price used in the spring budgets may be below what some farmers had to pay for nitrogen. Even with higher anhydrous prices, corn will be projected to be more profitable than soybeans. A $100 per ton increase in anhydrous ammonia price will increase nitrogen costs by $8.90 per acre, given that 170 pounds of actual nitrogen are applied per acre. An $8.90 increase in costs will reduce but not eliminate the returns advantage of corn.
There are a number of factors that could change these calculations:
Relative corn and soybean price change could cause profitability to switch.
Relative yields could vary. In particular, any yield drag for corn-after-corn could narrow profits
Insect, disease, or fungus problems could require pesticide treatments which could raise the costs of one of the crops.
Summary
Magnitude of differences in projected revenue of corn and soybeans across Crop Reporting Districts are large, suggesting that many farms will find corn production more profitable than soybean production. While Illinois farmers may shift acres from corn to soybeans in 2008, the relative profitability of the crops do not appear to be a reason for this acreage shift.
Acknowledgments
Data used in this study comes from the local Farm Business Farm Management (FBFM) Associations across the State of Illinois. Without their cooperation, information as comprehensive and accurate as this would not be available for educational purposes. FBFM, which consists of 6,000 plus farmers and 60 professional field staff, is a not-for-profit organization available to all farm operators in Illinois. FBFM field staff provides on-farm counsel with computerized recordkeeping, farm financial management, business entity planning and income tax management. For more information, please contact the State FBFM Office located at the University of Illinois Department of Agricultural and Consumer Economics at 217-333-5511 or visit the FBFM website at www.fbfm.org
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